MEPs significantly increased the share of the budget earmarked for the future Interreg (European Territorial Cooperation Regulation) for the cross-border cooperation component during the vote on Monday 3 December on the report by Pascal Arimont (EPP, Belgium) in the Committee on Regional Development.
In line with the European Parliament's position on the next multiannual financial framework (see EUROPE 12136), MEPs set the overall budget at €11.17 billion (at comparable 2018 prices), when the Commission only anticipated €8.43 billion.
Above all, MEPs are redistributing the budget between the various components provided for in the Regulation, by boosting the first component 'cross-border cooperation' from the 52.7% (€4.4 billion) initially planned for by the European Commission, to 67.16% (€7.5 billion).
On the other hand, they reduce the share devoted to the second component 'transnational cooperation' from 31.4% to 17.68%, which is from €2.65 billion to €1.97 billion.
They also secure the part dedicated to the third component, devoted to the ‘outermost regions’, at 3.2%, which automatically increases the budget to €357 million (compared with €270 million in the European Commission's proposal). They increase the share dedicated to the fourth component on interregional cooperation from 1.2% (€100 million) to 3.27% (€365 million).
The difficult issue of interregional innovation
The most contentious issue during the discussions was the fifth component of ‘interregional innovation investments’ - the novel feature introduced by the European Commission (see EUROPE 12029). Some MEPs, such as the rapporteur, regarded this new aspect, under direct management, in an unfavourable light, while others welcomed the Commission's proposal with open arms.
Finally, MEPs kept the €970 million as proposed by the European Commission, which amounts, in relative terms, to a reduction from 11.5% to 8.69% of the overall budget. Above all, MEPs introduce an obligation for the Commission to redistribute the remaining funds from the fifth strand to the other strands, if they are not spent by 31 December 2026.
Maritime aspect and co-financing
In addition, MEPs reintroduced the maritime aspect into the first component, which is dedicated to cross-border cooperation. The text voted on also provides for a maximum increase of up to 80% in the co-financing rate, compared to the 70% provided for by the European Commission. Originally, Mr. Arimont wanted to be able to go up to 85%.
In addition, MEPs increased the pre-financing rate to 3% for the first year of the programme, then to 2.5% for subsequent years, in order to help projects get off the ground as easily as possible, especially at the beginning, when the largest costs are incurred.
Other important matters: MEPs ask to remain with the principle of the rule n+3, i.e. the principle that the funds allocated in each programme should be spent no later than three years after the end of the budget cycle. It should be noted that the Commission proposed to return to the pre-crisis system, with release at the latest two years after the end of the budget cycle. Finally, MEPs suggest an exemption from the Regulation from the application of State Aid rules.
The negotiating mandate will be voted on at Parliament's plenary session in January. We are told that the Council is expected to adopt a political agreement (general approach) in the same month. (Original version in French by Pascal Hansens)