The majority of the MEPs of the 'regional development' committee (REGI) no longer seem to be opposed to the principle of making the granting of structural funds conditional on compliance with the rules of the Stability Act ('macro-conditionality'), judging from the results of the vote on the own-initiative report on the future of the cohesion policy post-2020, on the sidelines of the plenary session in Strasbourg on Thursday 18 May.
The winds have changed in the European Parliament. Whereas the institution was staunchly opposed to macro-conditionality during the structured dialogue with the European Commission on the possible freezing of funds for the Spanish and Portuguese regions (see EUROPE 11667), the committee's members seem to have softened their stance.
In the initial version proposed by the rapporteur, Kerstin Westphal (S&D, Germany), opposition to macro-economic conditions was clearly emphasised. However, this has disappeared in the wake of compromise amendments in the face of EPP opposition.
The text now includes only some of the rapporteur's proposal, calling for a balanced link between the cohesion policy and economic governance in the framework of the 'European Semester' budgetary process, on a reciprocal basis. It calls for greater account to be taken of the territorial dimension in the European Semester.
In another surprise move, the MEPs want the structural and investment funds not to be taken into account in calculating the deficit laid down in the Stability and Growth Pact, due to their role in investment. This position did not feature in the initial version of the text and was brought in by an amendment tabled by Louis-Joseph Manscour (S&D, France), which was adopted by the narrowest of margins (16 votes to 15).
These two changes displeased both right and left for different reasons, which explains the modest majority secured in the vote (20 votes to 4 with 13 abstentions). The EPP abstained due to the proposal not to include co-financing expenditure in the Stability and Growth Pact. The GUE/NGL abstained due to the absence of a clear and marked opposition to macro-economic conditionality.
Other than these two major changes, the text saw only slight adjustments compared to the rapporteur's version described in detail by EUROPE (see EUROPE 11747). The MEPs are calling for an adequate budget for the future cohesion policy, greater synergy between the structural and investment funds and other funds, and hope that the EU Fund for Strategic Investments will not infringe the coherence of the cohesion policy. They call for a harmonisation on state aid between cohesion policy and competition. In particular, they urge the Commission and member states to keep the principal of subsidies at the heart of the cohesion policy.
The vote on the own-initiative report is expected to take place at the June plenary session. This will make the European Parliament the second institution to reach its position after the Committee of the Regions, which is a consultative body of the EU (see EUROPE 11787). (Original version in French by Pascal Hansens)