2011/0211(COD)

Structural Funds: increased payments for certain Member States

Procedure completed

Activites

  • 2011/12/20 Final act published in Official Journal
  • 2011/12/13 Final act signed
  • 2011/12/13 End of procedure in Parliament
  • 2011/12/12 Act adopted by Council after Parliament's 1st reading
  • #3134
  • 2011/12/12 Council Meeting
  • 2011/12/06 CSL Final Agreement
  • 2011/12/01 Text adopted by Parliament, 1st reading/single reading
    • T7-0527/2011 summary
    • Results of vote in Parliament
  • 2011/11/16 Committee report tabled for plenary, 1st reading/single reading
  • 2011/11/14 Vote in committee, 1st reading/single reading
  • 2011/10/27 Economic and Social Committee: opinion, report
  • 2011/10/14 Deadline Amendments
  • 2011/10/04 Committee draft report
  • 2011/09/13 Committee referral announced in Parliament, 1st reading/single reading
  • 2011/08/01 EP officialisation
  • 2011/08/01 Legislative proposal
    • COM(2011)0482 summary
    • DG Regional Policy, HAHN Johannes

Documents

Votes

A7-0383/2011 - Danuta Maria Hübner - Vote unique

2011/01/12
Position Total ALDE ECR EFD GUE/NGL NI PPE S&D Verts/ALE correctional
For 536 72 1 15 29 5 215 150 49 0
Against 43 0 19 7 0 14 3 0 0 0
Abstain 44 0 31 1 2 3 7 0 0 0
AmendmentsDossier
23 2011/0211(COD) Structural Funds: increased payments for certain Member States
2011/10/18 REGI 23 amendments...
source: PE-474.003

History

(these mark the time of scraping, not the official date of the change)

2012-02-09
activities added
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    2011-08-01
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      text
      • PURPOSE: to help those Member States most affected by the financial crisis to continue their cohesion programmes on the ground so as to inject funds into the economy.

        PROPOSED ACT: Regulation of the European Parliament and of the Council.

        BACKGROUND: the deepening of the financial crisis in some of the Member States is affecting substantially the real economy due to the amount of debt and the difficulties encountered by Governments to borrow money from the market. In this context, the proper implementation of cohesion programmes is of particular importance because it facilitates financial assistance to the real economy.

        Nonetheless, the implementation of the programmes is often challenging as a result of the liquidity problems resulting from budget constraints. This is particularly the case for those Member States which have been most affected by the crisis and have received financial assistance under a programme from the European Financial Stabilisation Mechanism (EFSM) for the euro countries or from the Balance of Payments (BoP) mechanism for non euro countries.

        To date, six countries have requested financial assistance under these mechanisms and have agreed with the Commission a macro-economic adjustment programme: Hungary, Romania, Latvia, Portugal, Greece and Ireland. These Member States (and indeed any other Member State which may be concerned in the future by such assistance programmes) should receive help to continue the implementation of the Structural Fund and Cohesion Fund programmes by increasing the sums allocated to the countries concerned for the period for which they are under the support mechanisms.

        IMPACT ASSESSMENT: the proposal would allow the Commission to increase payments to the countries concerned, for the period they are under the support mechanisms.

        LEGAL BASIS: Article 177 of the Treaty on the Functioning of the European Union (TFEU).

        CONTENT: the proposal contains provisions that would allow the Commission to increase payments to the countries most affected by the financial crisis for the period for which they are under the support mechanisms, without changing their overall allocation under the Structural Funds and the Cohesion Fund for the period 2007-2013.

        It is proposed to amend Council Regulation (EC) No 1083/2006 on the European Regional Development Fund, the European Social Fund and the Cohesion Fund so as to enable the Commission, upon the request of the Member States concerned, to reimburse the newly declared expenditure for the period in question by an increased amount calculated by applying a 10 percentage points top-up of the applicable co-financing rates for the priority axis.

        In applying the top-up, the co-financing rate of the programme cannot exceed by more than 10 percentage points the maximum ceilings of Annex III to the General Regulation. In any case contribution from the funds to the priority axis concerned cannot be higher than the amount mentioned in the Commission decision approving the operational programme.

        This will be a temporary measure which will be terminated once the Member State exits the support mechanism.

        BUDGETARY IMPACT: there is no impact on commitment appropriations since no modification is proposed to the maximum amounts of Structural Funds and Cohesion Fund financing provided for in the operational programmes for the programming period 2007-2013. For payment appropriations, the proposal can result in a higher reimbursement to the Member States concerned. The additional payment appropriations for this proposal will imply an increase of payment appropriations (for 2012 approximately EUR 2,304 million) which may be compensated by the end of the programming period. Therefore, the total payment appropriations for the whole programming period remain unchanged.

        The Commission will in 2012 review the need for additional payment credits and, if necessary, propose the necessary actions to the Budgetary Authority

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    • The Committee on Regional Development adopted the
      report by Danuta Maria HUBNER (EPP, PL) on the proposal for a
      regulation of the European Parliament and of the Council amending
      Council Regulation (EC) No 1083/2006 as regards certain provisions
      relating to financial management for certain Member States
      experiencing or threatened with serious difficulties with respect
      to their financial stability. It recommended that the European
      Parliament’s position at first reading, under the ordinary
      legislative procedure, should be to amend the Commission proposal.
      The amendments are the result of negotiations between the committee
      members and the Council. The main amendments are as
      follows:
      Derogation: the
      derogation permitting the increase of interim payments will be
      granted upon the written request of
      a Member State meeting one of the conditions
      mentioned in the text. The request shall be submitted within two
      months of the entry into force of the regulation or within two
      months from the date on which a Member State meets
      the conditions.
      It is added that the temporary increase in interim
      payments should also be considered in the context of the budgetary
      restraints facing all Member States, which should be reflected
      appropriately in the EU budget. In addition, since the main
      purpose of the mechanism is to address specific current
      difficulties, its application should be limited in
      time. Therefore application of the mechanism should start
      on 1 January 2010 and its duration should be limited until the
      end of 31 December 2013. The derogation shall cease to be
      valid for statements of expenditure submitted after 31 December
      2013.
      Justification of the request for
      derogation: the amended text states
      that  in its request submitted to the Commission, the Member
      State shall justify the necessity of the derogation by providing
      information necessary to establish:

      the unavailability of resources for the national
      counterpart through data on its macroeconomic and fiscal situation;
      and that an increase of payments referred to in paragraph 2 is
      necessary to safeguard the continuation of the implementation of
      operational programmes;
      that the problems persist even if the maximum ceilings
      applicable to co-financing rates of Annex III are used;
      reference to a Council Decision or other legal act,
      which justifies that the Member State falls under any of the points
      of eligibility as stated in the draft regulation, as well as the
      concrete starting date from which the financial assistance was made
      available to the Member State.

      The Commission will have 30 days from the day of
      submission of the request to raise any objection against the
      correctness of the information submitted. If the Commission
      does not raise any objection,
      the Member State request for the derogation shall be
      considered as justified. However, if the Commission decides to
      object to the Member State's request, the Commission
      shall adopt a decision, by means of an implementing act, on this
      and shall give the reasons.
      Intended use of the derogation: the Member State request shall also
      detail the intended use of the derogation, and give
      information about complementary measures foreseen in order to
      concentrate the funds on competitiveness, growth and employment,
      including, where appropriate, a modification of the
      operational programmes.
      The text further states that in the context of the
      strategic reporting in accordance with the terms of the Regulation,
      the Member States shall provide the Commission with
      appropriate information on the use of the derogation
      showing how the increased amount of support has contributed to
      promote competitiveness, growth and jobs in
      the Member State concerned. This information shall
      be taken into account by the Commission in the preparation of the
      strategic report.
      Retroactive application:
      the Regulation shall apply retroactively to the following Member
      States: in case
      of Ireland, Greece and Portugal with
      effect from the day when the financial assistance was
      made available to these Member States and in case
      of Hungary, Latvia and Romania from 1
      January 2010.
      Lastly, the committee notes that as a result of the
      increase in interim payments, the required national counterpart
      will be reduced accordingly. Due to the temporary nature
      of the increase and in order to maintain the
      original co-financing rates as the reference point for
      calculation of the temporarily increased amounts, the changes
      resulting from application of the mechanism will not be reflected
      in the financial plan included in the operational
      programme. However, operational programmes may need to
      be updated in order to concentrate the funds on competitiveness,
      growth and employment an in order to align their targets and
      objectives with the decrease of total funding available.
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European Commission
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REGI/7/06699
reference
2011/0211(COD)
subtype
Legislation
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  • Treaty on the Functioning of the EU TFEU 177-p1
stage_reached
Procedure completed
summary
  • Amending Regulation (EC) No 1083/2006
instrument
Regulation
title
Structural Funds: increased payments for certain Member States
type
COD - Ordinary legislative procedure (ex-codecision)
final
subject

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© European Union, 2011 – Source: European Parliament