Brussels, 13/02/2009 (Agence Europe) - Meeting in Brussels on Thursday 12 February, the regional development committee of the European Parliament adopted by 43 votes to 0 and 3 abstentions the own-initiative report by Evgeni Kirilov (PES, Bulgaria) on a “European economic recovery plan”. In so doing, MEPs consider that a faster, more flexible funding for regional policy projects will help EU economic recovery but that faster funding must not mean looser rules. The Kirilov report should be put to the plenary vote in March, in Strasbourg.
With the adoption of the Kirilov report, MEPs call: (1) on the European Commission and the member states to ensure that measures intended to speed up and simplify funding, while making it more flexible, should in no way lessen the responsibility incumbent upon them to ensure implementation of these funds; (2) on member states and local and regional authorities to ensure they make contribution as required by co-funding regulations so that the funds allocated by the European structural funds may be fully exploited; and (3) on the Commission to ensure measures taken by member states do not run counter to free competition, social standards and the implementation of Community environmental and climate protection requirements.
MEPs also call for decisive action to support the demand side of the economy, as well as measures to assist SMEs, social economy enterprises, and local and regional authorities. They call on member states to make “wide use of structural funds to secure job creation and to promote SMEs, entrepreneurship, and professional training”.
MEPs encourage member states to “explore synergies” between cohesion funding and other EU sources of funding (such as the R&D framework programmes) as well as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). It also urges them to simplify SME access to EU financial engineering instruments such as JESSICA (cities), JASMINE (micro-credit) and JEREMIE (micro to medium businesses).
Finally, MEPs welcome a proposal that investments in energy efficiency, energy interconnections and renewable energies in the housing sector should be eligible for European Regional Development Fund funding throughout the EU. The committee urges member states and the regions to make comprehensive use of this forthcoming new possibility.
The Kirilov report underlines that: (1) proposed changes to make EU structural fund grant payments more flexible to meet the needs of “extraordinary economic circumstances” should boost the economy and provide support, especially for people hit by the crisis. Nonetheless, flexible funding measures must not breach EU competition rules or social and environmental protection standards, the committee says; (2) changes must aim to accelerate investment at national and regional level by simplifying access to grants, supporting people hit by the crisis and increasing the availability of finance for SMEs; and (3) over 65% (€230 billion) of cohesion policy funding is earmarked for investment in the four priority areas of the EU growth and jobs strategy - people (jobs), business, infrastructure and energy, as well as research and innovation. (G.B./transl.jl)