As announced by the President of the European Commission, Ursula von der Leyen, during her visit to Poland in mid-September, the Commission adopted, on Monday 21 October, a proposal to amend three EU regulations to ensure that EU funds can be rapidly mobilised in the event of damage caused by natural disasters (see EUROPE 13486/15).
The amendments concern the Regulations governing the European Regional Development Fund (ERDF), the Cohesion Fund and the European Social Fund Plus (ESF+) for the 2021-2027 programming period, as well as the Regulation on the European Agricultural Fund for Rural Development (EAFRD) as part of the 2014-2022 framework.
This proposal is a direct response to the floods in Central and Eastern Europe and the wildfires in Portugal in September 2024. Taken together, the proposals could enable the seven Member States concerned (Poland, Romania, Austria, the Czech Republic, Hungary, Portugal and Slovakia) to reprogramme around €18 billion (around €17.7 billion under the Cohesion Policy funds and €588 million from the EAFRD) to help in the context of climate-related disasters.
“By injecting liquidity with higher pre-financing and co-financing of EU funds, we are making a real difference for the people and the regions that are harshly hit by these disasters”, commented Ms von der Leyen.
Increased pre-financing and co-financing. The proposal gives Member States additional flexibility to use part of the Funds to repair damaged infrastructure and equipment, provide food and basic material assistance and social and healthcare support, and temporarily support the financing of short-time work schemes. In addition, two new measures under the ERDF and ESF+ will be introduced.
Firstly, an additional pre-financing of 30% will offer an immediate injection of liquidity to ease the budgetary pressure on affected Member States.
Secondly, the EU will be able to finance up to 100% of the measures supported, with no national co-financing required to kick-start the reconstruction work.
A maximum of 10% of the existing Cohesion Policy funds earmarked for Member States for the 2021–2027 programming period may be used to deliver on these objectives, allowing for transfers between Cohesion Policy funds.
Rural development. The proposed changes to the EU’s rural development funds (EAFRD legal framework 2014-2022) will give Member States greater flexibility to support farmers, forest holders and businesses affected by natural disasters.
The financial support offered by the EAFRD will be 100% covered by EU funds. The amendment will allow Member States to directly and swiftly provide emergency assistance to farmers, forest holders, and small and medium-sized enterprises (SMEs) in the form of lump sums. In addition, Member States will benefit from more flexibility to introduce and reinforce measures to restore the production potential of affected farms and forests.
The proposal (https://aeur.eu/f/dzc ) will be examined by the European Parliament and the EU Council. (Original version in French by Lionel Changeur)