According to data provided by the European Commission on Wednesday, 26 August, Member States are increasingly requesting the option to transfer resources from the structural and investment funds between regions—flexibility made possible by the Coronavirus Response Investment Initiatives (CRII and CRII+).
The Commission indicates that, to date, the Czech Republic, Greece, Hungary, Poland, Romania, and Slovakia have made use of this new flexibility, notably to make transfers from the least developed regions to the most developed regions. The most urbanized areas are, in fact, those that have been most affected by the virus, and this situation necessitates additional investments related to healthcare.
When the Commission presented the new initiative at the beginning of April (see EUROPE 12469/5), some regions had feared that these new flexibilities could potentially divert funds from the poorest regions in favour of the richest regions, whereas cohesion policy is first and foremost aimed at reducing territorial disparities.
Furthermore, the Commission notes that 100% European co-financing is one of the most popular measures. Consequently, 64 out of 127 operational programmes were modified to make use of this flexibility.
The transfer of funds between and within the priorities of the same fund in the same programme and the transfer of resources between funds have also met with great success. As a result, up to €3 billion has reportedly been reallocated.
The flexibility offered for the use of financial instruments has also been harnessed by Member States to redesign existing financial instruments or develop new ones. More than €4 billion in additional funds has reportedly been generated this way.
Moreover, more than €3 billion has been allocated to working capital grants so as to support SMEs in sectors that have been especially affected by the pandemic, such as the tourism sector.
The health sector received nearly €3.5 billion in additional funding, including €1 billion directly for health costs.
In general, all Member States—with the exception of Austria, which has already deployed all European resources—plan to mobilise the resources made available. To date, 19 Member States, including the United Kingdom, have already sent programme amendments to the European Commission. (Original version in French by Pascal Hansens)