Brussels, 17/07/2009 (Agence Europe) - The European Commission is expected to adopt its proposal for the simplification of structural and cohesion funds on Wednesday 22 July. This proposal follows on from the communication adopted on 3 July on the “shared commitment for employment” which called on it to propose an amendment to the regulation on structural funds, allowing member states not to grant national co-financing to the European Social Fund (ESF) during 2009 and 2010 (see EUROPE 9912). Several times already, the Commission has delayed adoption of its proposal on simplifying the said funds. In a statement, it says that the European Commission is committed to reducing the impact of the economic crisis: simplification of the regulation on structural and cohesion funds is a very important step towards doing this. However, it says, it is clear that internal discussions on the matter within the Commission have to continue before the proposal is formally adopted.
It is essential to give as much help as possible to member states and regions which are in difficulty as a result of the crisis and which are facing runaway unemployment, says the Commission, sure in its belief that the European Social Fund is the appropriate instrument for helping people back into work and/or getting back into the labour market. In order to speed up implementation programmes and help overcome difficulties, an additional measure has been proposed to lessen the current pressure and allow full use to be made of European funds, especially for the unemployed or those about to lose their jobs. This requires amendment of Council Regulation 1083/2006 on investment in cohesion policy, including, as the communication on the “shared commitment for employment” states, a temporary change in the way payment of programmes co-financed by the ESF are calculated. Some net contributing countries fear that they will have to pay more after the 2009-2010 period, when some member states will call for 100% reimbursement. Indeed, through fully using the budget available in the EU financial perspectives, the Commission wants to ensure that €19 billion are available to the ESF for 2009-2010. This total, included in the financial perspectives, cannot be changed. If these member states propose quality projects to the Commission and hope for 100% reimbursement, they may receive it. This, however, worries net contributing countries. EUROPE believes that Commissioner Günter Verheugen has acted to block the adoption of the regulation on Wednesday because Germany (among others), which has its own problems, is not prepared to put in more money than planned. However, net contributing countries believe that only those countries which are in receipt of IMF funding (Romania and Hungary, for example) should be able to receive ESF funding. (G.B./transl.rt)