Progress made before the adoption of the new Cohesion PolicyNovember 8, 2013
Funding Scheme: 2013-11-08
Pgm2014 2020: Yes
The regional development committee on Thursday endorsed the deal struck with Council on the reform of key regulation covering all EU funds. This clears the last hurdle before the full House votes on the new Cohesion Policy for 2014-2020 and paves the way for the €325 billion investment tool for EU regions to come into force on time.
Following its approval in July of the agreement with Council on the bulk of the Cohesion Policy reform package, the Regional Development Committee’s negotiating team won an important concession on the outstanding issue of “Macroeconomic Conditionalities” in further talks with member states. This is a mechanism that can trigger the suspension of funds in the event of a macroeconomic imbalance or an excessive budget deficit.
As a result, Parliament will in future be able to exercise its right of scrutiny over all decision-making procedures affecting the suspension of funds in a structured dialogue with the Commission. In addition, the suspension of funds will now be adjusted in line with social and economic circumstances in the member state concerned.
The negotiators also succeeded in changing the name of the “Macroeconomic Conditionalities” mechanism to “measures linking effectiveness of European Structural and Investment Funds to sound economic governance”.
MEPs also succeeded in raising annual pre-financing rates which will provide regions with sufficient resources to kick-start investment and hence contribute to the efforts to overcome the economic crisis. In addition, co-financing rates for the most outermost regions and for Cyprus were increased from 50% to 85%.
Furthermore, the negotiating team succeeded in reducing the size of the so-called Performance Reserve, resulting in an increase in the overall level of payments for 2014-2020 by more than €1 billion.
The draft reports on the Common Provisions Regulation (CPR) as well as the other regulations in the legislative package on Cohesion Policy reform are scheduled for a first-reading vote in plenary during the November session.
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