During the meeting of the Committee of Permanent Representatives (Coreper II) on Wednesday, 17 April, Member States’ permanent representatives adopted the partial negotiating mandate on Block 6 regarding the financial management and framework of the post-2020 Common Provisions Regulation on structural and investment funds.
The discussions mainly focused on the terms and conditions for suspending payments in whole or in part (Article 91 of the regulation). Hungary and Poland judged that a reasoned opinion from the European Commission in the context of an infringement would not suffice and that it was necessary to wait for the decision of the Court of Justice of the EU. In the end, the reasoned opinion was upheld.
Moreover, the rate provided for in interim payments—set at 90% of the amounts recorded in payment applications by the European Commission—has been raised to 95% (Article 87). One source explained to us that interim payments are never paid in full so as to not only be able to put pressure on Member States in the event of a financial correction but also avoid any interruption in cash flow. This rate was considered too low by the majority of delegations.
Another point that was modified is the length of time that the European Commission is given to make financial corrections, which has been reduced from 12 months to 9 months, at the request of the net contributors.
Another significant change concerns the annual number of payment applications. The Commission had set it at four requests per year. Member States wanted as much flexibility as possible. In the end, the Romanian Presidency of the Council of the EU made the decision: it will be seven times a year.
During the discussions, many delegations raised the issue of pre-financing in order to increase them in relation to the European Commission’s proposals.
As a result, the negotiations are making rapid progress. Before Block 6, Block 1 (partnerships), Block 2 (ex ante conditions), Block 5 (controls and audits), and Blocks 3 (monitoring, communication, and visibility) and 4 (the different supports), as well as the European Social Fund Plus (ESF+), have been closed. All that remains is Block 7 on the definitions, which should be adopted on 29 May in Coreper.
For further details on the partial mandate: https://bit.ly/2Irvz4D. (Pascal Hanssens)