Brussels, 03/04/2009 (Agence Europe) - After a joint discussion in plenary session in Brussels in the early evening of 1 April, with European Commission Vice-President and Justice and Home Affairs Commissioner Jacques Barrot, the European Parliament approved three reports: the first calling for more flexible management of European funds (European Regional Development Fund, ERDF, the European Social Fund, ESF, and the Cohesion Fund), the second for greater simplification of ESF rules and the third for all member states and EU regions to be able to benefit from ERDF funding to invest in energy efficiency for homes.
Arrangements on financial management of ERDF, ESF and Cohesion Fund. With the adoption by 603 votes to 21, with 8 abstentions, of the report by Iratxe Garcia Perez (PES, Spain), Parliament gave its assent to the proposal for amendment of the Council regulation on certain provisions on the financial management of the above-mentioned funds. The amendments brought to the general regulation are based in two priorities: (1) speeding up spending to free up greater liquidity for the implementation of projects; (2) simplification of the rules so that schemes and projects can be implemented more speedily. In presenting her report, Garcia Perez highlighted four main areas for intervention proposed by the Commission: (1) enhancing support from the European Investment Bank (EIB) and the European Investment Fund (EIF), (2) simplification of eligibility for expenditure, (3) increasing ERDF and ESF pre-financing: the 2009 pre-financing tranche for EU12 member states has risen by 2%, with EU15 member states benefiting from the introduction of a new 2.5% tranche, (4) speeding up payment for major projects.
New types of costs eligible for an ESF contribution. Against a background of economic slowdown, it is of vital importance to make full use of the opportunities offered by the ESF to attenuate the problems faced by the unemployed, and particularly the most vulnerable, the EP said. Through its adoption, of the report by Karin Jöns (PES, Germany) by 604 votes to 16, with 10 abstentions, Parliament accepted the recommendations of the rapporteur who called on it to adopt its stance as quickly as possible so that the proposed changes could come into effect swiftly to ensure their full effectiveness, a press release says. The Commission proposal, backed by MEPs, restricted itself to simplifying ESF operations in order to encourage the effective and swift use of available resources but without compromising the principles of good financial management. It was a matter of simplifying the basis for calculating eligible costs and making greater use of payment of flat rate sums rather than reimbursing the real costs. In plenary session, Jöns said, “Urgent action is needed. We have to cut ESF red tape. Through this reform, we can be sure that funding will be used a quickly as possible so that people can join the jobs market immediately. What we are not changing are ESF procedures”.
Investment in energy efficiency and renewable energy in the home. MEPs adopted the agreement with the Council on amendment to certain ERDF rules by 629 votes to 17 with 12 abstentions. This agreement was negotiated on behalf of the Parliament by Emmanouil Angelakas (EPP-ED, Greece). Angelakas told the plenary session that the proposed amendments to the ERDF sought to authorise the use of funds to co-finance national, regional and local authority programmes targeting, for example, the building sector (“one of the sectors that creates most jobs”) - installation of double glazing, insulation of walls, installations of solar panels. “The regulation has to be made to focus on energy efficiency in the 27 member states of the EU,” said Angelakas, highlighting “problems of access confronting some of them, and especially in some towns”. These changes will not increase funding or affect the Community budget, but they will allow member states to redirect their priorities to fund projects in this area. The main legislative change needed is an amendment to Article 7
(eligibility of expenditure) of regulation 1080/2006 (see below letter of URBAN-Housing intergroup to EU ministers).
In a press release, Parliament says that, in each member state, spending to improve energy efficiency and use renewable energy in housing will be eligible for ERDF funding, up to a ceiling of 4% of the member state's total ERDF allocation. “The amendments brought to the ERDF regulation to invest 4% of allocations from the fund in housing represents a total of €8 billion for member states,” Barrot pointed out to the plenary session. Parliament felt that the categories of housing eligible under their national legislations should be determined by each member state in order to support social cohesion. The decision on whether or not to subsidise investment in housing under national arrangements had to be for member states to make, the EP said, noting that housing accounts for 40% of energy end demand and, according to estimates, for 40% of greenhouse gas emissions in the EU. The Commission believes that energy savings in the construction sector could reach 28% by 2020. A further Parliamentary amendment seeks to make new types of costs eligible for ERDF contributions: indirect costs (up to 20% of direct costs of an operation), and flat-rate costs (up to €50,000). The aim of this amendment is to simplify statements of expenses and to allow public authorities to prepare projects and measures more effectively and more quickly. For reasons of legal security, these new forms of eligible costs will be deemed eligible for ERDF funding with effect from 1 August 2006, when regulation 1080/2006 came into force.
Jacques Barrot (replacing Regional Policy Commissioner Danuta Hübner) then read Hübner's statement: “I thank all the MEPs and the three rapporteurs. I remain at your disposal for fruitful discussion and I await your remarks on the proposals put to you”. Speaking on behalf of the budgets committee, Nathalie Griesbeck (ALDE, France) stressed that “concrete responses to the economic crisis have to be brought quickly despite a strict regime. Europe wants to support the sectors which can bring answers to citizens and it is now up to member states to get organised to respond to the current challenges”. On behalf of the employment committee, Gabriela Cretu (PES, Romania) said she “supported simplification of the rules and access to structural funds. We are delivering a blank cheque and we call for transparency on management of the funds,” she stated. For the regional development committee, Madeira Jamila (PES, Portugal) noted that “simplification is essential if the structural funds are to be better used”.
Funding of social housing, part of the solution to the crisis
In a letter sent to all 27 ministers responsible for the ERDF and housing, the Urban-Logement intergroup writes, “The adoption by the European Parliament (EP) of the proposal of new article 7 of the ERDF regulation related to the energy efficiency and use of renewable energy in housing for low-income households is a step that the Urban-Housing intergroup of the EP strongly welcomes. This measure … will not only be a great contribution to the economic recovery of the EU, but also to the improvement of our fellow citizens' environment and therefore their quality of life. On this issue, both the EP and the Council ... have shown that the EU was able to deliver rapid answers to the citizen's needs, especially in time of crisis”. The intergroup pledges “to make sure that this new rule will be used and efficiently implemented. This will require a certain number of conditions such as the mobilisation of institutional actors at all levels. Since it will be up to member states and the Managing Authorities to make use of this opportunity, you will have a key role to play,” the intergroup points out in its letter. It goes on, “Member states will indeed have to decide about the implementation rules for this measure in a way that meets the objective of reducing energy consumption in existing housing and this contributing to the fight against climate breakdown, to the decrease of energy charges for the most vulnerable households, and to the support of the economy by developing green skills and rising up the demand for green technologies”. In conclusion, the intergroup calls on governments and member states “to develop the necessary frame in the coming weeks for swift and efficient implementation of this new opportunity”.
Speaking to press, Jean-Marie Beaupuy (ALDE, France) called on the Commission “to act vis-à-vis member states so that these texts are applied”. Alain Hutchinson (PES, Belgium) said the urban dimension had to be highlighted in European policies: “housing is an obvious factor in social cohesion”. Bernard Lange (DG Regio, European Commission) noted that “housing has never really been an area where structural funds have got involved”. Gisela Kallenbach (Greens, Germany) said, “we need local initiatives, alliances to combat climate change and use housing with greater energy efficiency”. Oldrich Vlasak (EPP-ED, Czech Republic) pointed out that the Czech Presidency “was fully in favour of this energy efficiency project in housing”. (G.B./transl.rt)