PURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nThe Council took note of a Presidency progress report\non work undertaken on a package of legislative proposals for the\nEU's cohesion policy for the 2014-20 period.
\nTaking into account the discussion so-far, a set of\nguiding principles for assessment and improvement of the proposal\nof the Commission can be identified:
\n\n· \nsome Commission proposals have raised doubts in\nterms of their conformity to the subsidiarity principle. It\nis therefore crucial to strike the right balance between the\nresponsibilities of Member States and the Commission, especially in\nsuch areas as: the role of country-specific recommendations under\nArticles 121(2) TFEU and the relevant Council recommendations\nadopted under 148(4) TFEU, the mechanisms of thematic\nconcentration, and ex-ante and macroeconomic\nconditionalities;
\n\n· \nthe partnership principle should continue to foster multi-level and bottom-up\nfeatures of Cohesion Policy by involving the relevant partners in\nthe process of strategic programming and implementation according\nto the established modes of cooperation in a given Member\nState;
\n\n· \nflexibility and proportionality\nare necessary in order to accommodate the\ndifferent institutional settings in all Member States and\nregions. Any administrative burden should be well justified by\nclear benefits in terms of effectiveness and efficiency;
\n\n· \nthe multiannual character of Cohesion Policy\nrequires a stable strategic and legal environment for\ninvestment throughout the whole programming period. It is therefore\nindispensible – according to a large majority of the\ndelegations – to give a new impetus to the simplification\nprocess and make the new legal framework of Cohesion Policy\nlighter and more user friendly. This should be done by eliminating\nexcessive details, overlaps and ambiguities.
\nOn the basis of the a questionnaire prepared by the\npresidency, ministers commented on the following issues related to\nstrategic programming and thematic concentration:
\n\n· \noptions for the status of the common strategic\nframework and for its adoption;
\n\n· \nproposed use of country-specific recommendations\nas an instrument for aligning cohesion policy with the broader\nEurope 2020 strategy for growth and jobs;
\n\n· \nbalance between thematic concentration and\nflexibility for Member States and regions in implementing cohesion\npolicy.
\nThe Council reached broad consensus in this regard,\nthereby facilitating early conclusion to negotiations on these\nissues by the incoming presidency.
\nCommon strategic framework: broad consensus was reached on both the status of\nthe common strategic framework and the procedure for its adoption.\nThere was general acceptance that this strategic policy document\nshould be approved by the European Parliament and the Council, and\na majority expressed a willingness to adopt it as an annex to\nthe proposed regulation establishing common provisions for the\nEU's structural and cohesion funds.
\nThere was broad agreement on the desirability of\nlinking cohesion policy objectives with the Europe 2020\nstrategy, whilst ensuring that the specific circumstances of\nindividual regions and territories are taken into account. A large\nmajority of delegations proposed that this be achieved by using\nnational reform programmes (NRPs) as a reference instead of\ncountry-specific recommendations (CSRs) as proposed by the\nCommission.
\nThe reason given by a majority of ministers was that\nexisting mechanisms should be usedas far as possible, rather than\ninstruments with a shorter time horizon requiring annual review of\nstrategic documents, thereby causing an unnecessary administrative\nburden. Ministers also considered that NRPs reflect better the\nspecific circumstances within each Member State than do the\nCSRs.
\nThe Partnership Contract is another key element of the strategic programming\narrangements. Many Member States underlined that they should be\nallowed to adapt the Partnership Contract to their country-specific\nsituation and multi-level governance structures.
\nGenerally, Member States welcomed the possibility\nof preparing multi-fund operational programmes. However, many\nMember States also raised doubts whether an integrated, multi-fund\napproach could really work on the ground.
\nThe Commission proposal to introduce an innovative\npilot instrument of Joint Action Plan was welcomed by Member\nStates but further in-depth examination is necessary.
\nIn the area of the European Territorial Cooperation,\nsome Member States expressed concerns about the extent to which the\nETC should be included in the Partnership\nContract.
\nThematic concentration:\noverall, Member States were supportive of the idea of thematic\nconcentration and the introduction of a menu of thematic\nobjectives. However, a broad majority expressed scepticism\nabout the mechanisms proposed by the Commission in this respect. A\nlarge number of delegations wanted to extend the limits for minimal\nallocations for specific types of interventions. Others proposed\nleaving it to Member States to choose specific intervention types\nfrom the proposed menu.
\nThere was broad agreement on needing greater\nflexibility to take account of regional specificities and\ndifferences, which would mean better results, and that this could\nnot be achieved by an automatic approach providing minimal\nallocations at EU level, nor by imposing a small number of\nintervention types for all Member States.
\nA number of Member States had reservations on whether\nthe ring-fencing of Funds as part of the thematic\nconcentration architecture would be an appropriate tool for this\npurpose, keeping in mind the different starting points of Member\nStates as well as their diverse national policies.
\n\n· \nMore specifically, the proposed ring-fencing of\nat least 20% of the total national ESF allocation to the thematic\nobjective related to social inclusion and poverty was\nquestioned by Member States. Similarly, the ring-fencing of at\nleast 5% of the total national ERDF allocation to urban development\nalso raised doubts.
\n\n· \nFurther, the earmarking of the total national\nERDF allocations to the low-carbon economy thematic\nobjective was viewed by some Member States as too prescriptive\nand did not adequately take into account the contribution of other\nthematic objectives and the Cohesion Fund to low-carbon economy\ngoals.
\n\n· \nSome Member States raised the issue of why in\nthe thematic objectives, no support for large enterprises\nhad been envisaged, while arguing that by assisting large\nenterprises, spill-over gains would be realised and thus also\nbenefit SMEs.
\n\n· \nSeveral Member States questioned the proposal of\nnot allowing more developed regions to invest in basic\ninfrastructure when this is duly justified, especially in the areas\nof ICT (Information and Communication Technologies) and\ntransport. There were also voices supporting investments in\nenergy infrastructures other than those strictly related to the\nlow-carbon economy as well as in tourism.
\nWith regard to European territorial\ncooperation, a significant number of Member States opposed the\nproposal to limit the list of thematic objectives in the\ncross-border and transnational strands to just four.
\nThere was a general support among Member States for\nfurther enhancing the territorial dimension of cohesion\npolicy and for introducing some specialised instruments for\nterritorial development. However, some delegations voiced concerns\nabout whether the variety of territorial development instruments\nwould not result in a fragmentation of cohesion policy\nintervention.
\nSome delegations raised further issues related\nto cohesion policy, such as the \"capping\" of interventions,\nmacroeconomic conditionality, the \"Connecting Europe\" facility for\ntransport, energy and information/communication technologies and\n\"RAL\" (reste à liquider or unspent commitments). These\nissues are related to the EU's multiannual financial framework for\nthe
\n2014-20 which is due to be discussed during the next\ntwo presidencies.
\nMinisters also discussed the modes of\nconditionality proposed by the Commission, i.e. positive and\nnegative incentives for ensuring a high-quality performance for\ncohesion policy.
\nThe Council reached agreement on a partial general\napproach concerning the EU cohesion policy for the 2014-2020\nperiod.
\nThe Council's partial general approach is aimed at\nstrengthening results orientation and improving the quality of\ncohesion spending. It also seeks to contribute to the integration\nof cohesion policy in the economic governance of the EU.
\nThe partial general approach does not prejudge the\noutcome of negotiations on other elements of cohesion policy or on\nthe EU's multiannual financial framework (MFF) for 2014-2020 or the\nFinancial Regulation.
\n(1) The Council's compromise text: this covers some of the more technical features of\nthe future cohesion policy. Work on the more political elements\nwill continue. Some of these are dealt with in the negotiations on\nthe MFF.
\nMore concretely, the partial general approach includes\nthe following elements:
\nProgramming:\ncommon programming rules are envisaged for the five funds\ncovered by a common strategic framework, namely: (i) the European Regional Development Fund\n(ERDF); (ii) the European Social Fund\n(ESF); (iii) the Cohesion Fund (CF); (iv)\nthe European Agricultural Fund for Rural Development (EAFRD); (v)\nthe European Maritime and Fisheries Fund (EMFF).
\nEach programme has to specify how it contributes to\nthe EU's 2020 strategy for jobs and growth. The question as to\nwhether the link between the EU strategy for jobs and growth on one\nhand and cohesion policy on the other should be assured through\ncountry-specific recommendations or national reform programmes has\nbeen left open. The Council will come back to it in\nJune.
\nEx ante conditionality: certain conditions must be met before funding may\nstart. It is aimed at improving cohesion policy\nperformance.
\nManagement and control: the partial general approach provides for specific\nrules for the management and control of funds disbursed.
\nMonitoring and evaluation: this part of the partial general approach makes sure\nthat the implementation of the cohesion policy programmes is duly\nmonitored and evaluated.
\nEligibility: the\nfinancing of already completed projects, which is possible under\nthe current rules, would be excluded under the partial general\napproach.
\nMajor projects: the\nCouncil's compromise text would facilitate the deployment of\n\"upstream\" quality reviews by independent experts of major\nprojects. This is considered to be more effective than the existing\napprovals \"downstream\" by the Commission.
\nFurther discussions will be held at Council level in\nthe coming months. The new cohesion policy rules are closely linked\nto the MFF negotiations. They are only expected to be adopted by\nthe European Parliament and the Council once an agreement on the\nMFF has been reached.
\n(2) Multiannual financial\nframework 2014-2020: the Council\ndiscussed, in public session, for the first time on the basis of\nthe negotiating box, certain areas of the multiannual financial\nframework (MFF) including cohesion policy and the provisions\nrelating to the five funds belonging to these policy\nfields.
\nDuring the debate, a number of delegations voiced\nconcerns about the proposed overall level of expenditure in\ntimes of fiscal consolidation and asked for cuts to be made in all\nheadings.
\nCohesion policy:\nsome Member States considered the proposed amount for cohesion\npolicy as a minimum, whereas others viewed the amount proposed for\nthe common agricultural policy as a minimum.
\nSeveral Member States expressed concerns relating\neither to the new category of transition regions or to its scope. A\nnumber of delegations opposed the proposed level of capping,\nlimiting the level of transfer to each Member State to a certain\npercentage of its gross domestic product. Some Member States\nobjected to the so-called reversed safety net, which would limit\nthe scope of support to a certain percentage as compared to its\nlevel during the 2007-2013 period. Some Member States argued for\nco-financing rates of 85% for less developed regions, whereas\nothers pleaded for reducing the rates.
\nThe rules governing the five funds under the common\nstrategic framework: some Member\nStates stressed the importance of macro-economic conditionality.\nOthers were sceptical about it, unless it was extended to other\ntypes of expenditure.
\nThe General Affairs Council of 29 May will hold a\nfirst discussion on a comprehensive version of the negotiating box\ncovering all elements of the MFF negotiating package.
\nMinisters for European Affairs will continue their\nwork on the MFF at an informal meeting in Horsens (Denmark) on 10\nand 11 June.
\nThe European Council will discuss the MFF for the\nfirst time on 28 and 29 June.
\nThe Commission presents an amended proposal for a\nRegulation laying down common provisions for the ERDF, the ESF, the\nCohesion Fund, the EAFRD and the EMFF covered by the Common\nStrategic Framework and general conditions applicable to the\ncohesion policy funds.
\nThis proposal, presented on 6 October 2011, foresaw\nthe adoption of a common strategic framework (CSF) to facilitate\nthe sectoral and territorial coordination of union intervention\nunder the CSF funds and with other relevant Union policies and\ninstruments. The Common Strategic Framework was to establish the\nkey areas of support, territorial challenges to be addressed,\npolicy objectives, priority areas for cooperation activities,\ncoordination mechanisms and mechanisms for coherence and\nconsistency with the economic policies of Member States and the\nUnion.
\nThe proposal foresaw that the CSF would be adopted by\nthe Commission as a delegated act. Both the Council and\nParliament’s Committee on Regional Policy have signalled\nthat they wish to see the CSF adopted as an annex to the regulation\nand not as a delegated act.
\nIn view of this and in order to facilitate a\ncompromise between the institutions, the Commission presents this\namended legislative proposal which splits the elements of the\nCSF between a new annex (Annex I) to the Common Provisions\nRegulation (CPR) and a delegated act.
\nThe new annex contains four sections\non
\n\n1) means to achieve coherence and consistency\nwith the economic policies of Member States and the\nUnion,
\n\n2) coordination mechanisms among CSF Funds and\nwith other relevant Union policies and instruments,
\n\n3) horizontal principles and cross-cutting\npolicy objectives and
\n\n4) arrangements to address territorial\nchallenges.
\nThe delegated act will in turn contain two\nsections:
\n\n1) sections on indicative actions of high\nEuropean added value and corresponding principles for delivery\nand
\n\n2) priorities for cooperation.
\nThe Commission maintains, however, that all\nelements of the CSF, whether included in the annex or in the\ndelegated act, remain non-essential elements for the purpose\nof Article 290 Treaty of the Functioning of the European Union and\ncan thus be amended by delegated act. The essential elements are\ncontained in Articles 11 and 12 of the CPR.
\nThe Council agreed on a fourth\npartial general approachon the cohesion policy\nlegislative package for the 2014-2020 period.
\nThe partial general approach\ncomplements the three partial general approaches agreed\non:
\nThe partial general\napproach covers the following two elements:
\n1.\nFinancial management: this part of the\npartial general approach is aimed at ensuring that EU support under\nthe cohesion policy respects the principle of sound financial\nmanagement and safeguards the European Union's financial interest.\nThe provisions cover inter alia areas such as:
\nThe compromise text agreed by the Council\nstipulates that in order to safeguard the\nUnion's financial interests, there should be measures limited in\ntime that allow the authorising officer by delegation to interrupt\npayments where there is clear evidence to suggest a significant\ndeficiency in the functioning of the management and control system,\nevidence of irregularities linked to a payment application, or a\nfailure to submit documents for the purpose of examination and\nacceptance of accounts.
\nThe duration of the interruption period should be up\nto nine months- if a Member State so\nwishes - to give sufficient time to resolve the situation which\ngave rise to the interruption with a view to avoid having to resort\nto suspensions.
\n2.\nCommon strategic framework (CSF): this part of the\npartial general approach is about setting up a framework that\nprovides strategic orientation to the programming and the\ncoordination of EU support under the five following funds: the\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the European Maritime and Fisheries\nFund (EMFF).
\nThe compromise text agreed by the Council\nspecifies, in particular, how the CSF Funds will\ncontribute to the objectives of Union’s strategy for smart,\nsustainable and inclusive growth, the means to address key\nterritorial challenges, the integrated use of CSF Funds,\nhorizontal principles and cross-cutting policy objectives, the\nmeans for coordination with other relevant Union policies and\ncooperation activities.
\nThese partial general approaches do not prejudge the\noutcome of negotiations on other elements of cohesion policy or on\nthe MFF for 2014-2020. Since all four partial general approaches\nwere agreed on the principle that nothing is agreed until\neverything is agreed they may be subject to change as a result of\nthese other negotiations.
\nThe Presidency intends to step up the informal\ntrilogues with the European Parliament and the Commission achieving\na preliminary agreement among the three institutions on\nprogramming before the end of the year, thus facilitating the\npreparatory work of Member States and regions for the new\nprogrammes.
\nThis proposal aims to amend the Commission proposal\ndated 11/09/2012 which concerned the amendment of the Regulation\nlaying down common provisions on the European Regional Development\nFund, the European Social Fund, the Cohesion Fund, the European\nAgricultural Fund for Rural Development and the European Maritime\nand Fisheries Fund covered by the Common Strategic Framework (CSF)\nand laying down general provisions on the European Regional\nDevelopment Fund, the European Social Fund and the Cohesion\nFund.
\nGiven the urgent priority to address youth\nunemployment in the Union's most affected regions, the Commission\nproposes to create a Youth Employment Initiative, funded from a\nspecific allocation and from targeted investment from the European\nSocial Fund (ESF).
\nThe objective of the Initiative is to support young\npeople not in employment, education or training residing in the\neligible regions. The Initiative will be implemented as a part of\nthe Investment for growth and jobs goal.
\nResources for the Youth Employment Initiative will\namount to EUR 6 000 000 000 with at least EUR 3 000 000 000\nfrom ESF targeted investment.
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nThe Council reached agreement on a partial general\napproach concerning the EU cohesion policy for the 2014-2020\nperiod.
\nThe Council's partial general approach is aimed at\nstrengthening results orientation and improving the quality of\ncohesion spending. It also seeks to contribute to the integration\nof cohesion policy in the economic governance of the EU.
\nThe partial general approach does not prejudge the\noutcome of negotiations on other elements of cohesion policy or on\nthe EU's multiannual financial framework (MFF) for 2014-2020 or the\nFinancial Regulation.
\n(1) The Council's compromise text: this covers some of the more technical features of\nthe future cohesion policy. Work on the more political elements\nwill continue. Some of these are dealt with in the negotiations on\nthe MFF.
\nMore concretely, the partial general approach includes\nthe following elements:
\nProgramming:\ncommon programming rules are envisaged for the five funds\ncovered by a common strategic framework, namely: (i) the European Regional Development Fund\n(ERDF); (ii) the European Social Fund\n(ESF); (iii) the Cohesion Fund (CF); (iv)\nthe European Agricultural Fund for Rural Development (EAFRD); (v)\nthe European Maritime and Fisheries Fund (EMFF).
\nEach programme has to specify how it contributes to\nthe EU's 2020 strategy for jobs and growth. The question as to\nwhether the link between the EU strategy for jobs and growth on one\nhand and cohesion policy on the other should be assured through\ncountry-specific recommendations or national reform programmes has\nbeen left open. The Council will come back to it in\nJune.
\nEx ante conditionality: certain conditions must be met before funding may\nstart. It is aimed at improving cohesion policy\nperformance.
\nManagement and control: the partial general approach provides for specific\nrules for the management and control of funds disbursed.
\nMonitoring and evaluation: this part of the partial general approach makes sure\nthat the implementation of the cohesion policy programmes is duly\nmonitored and evaluated.
\nEligibility: the\nfinancing of already completed projects, which is possible under\nthe current rules, would be excluded under the partial general\napproach.
\nMajor projects: the\nCouncil's compromise text would facilitate the deployment of\n\"upstream\" quality reviews by independent experts of major\nprojects. This is considered to be more effective than the existing\napprovals \"downstream\" by the Commission.
\nFurther discussions will be held at Council level in\nthe coming months. The new cohesion policy rules are closely linked\nto the MFF negotiations. They are only expected to be adopted by\nthe European Parliament and the Council once an agreement on the\nMFF has been reached.
\n(2) Multiannual financial\nframework 2014-2020: the Council\ndiscussed, in public session, for the first time on the basis of\nthe negotiating box, certain areas of the multiannual financial\nframework (MFF) including cohesion policy and the provisions\nrelating to the five funds belonging to these policy\nfields.
\nDuring the debate, a number of delegations voiced\nconcerns about the proposed overall level of expenditure in\ntimes of fiscal consolidation and asked for cuts to be made in all\nheadings.
\nCohesion policy:\nsome Member States considered the proposed amount for cohesion\npolicy as a minimum, whereas others viewed the amount proposed for\nthe common agricultural policy as a minimum.
\nSeveral Member States expressed concerns relating\neither to the new category of transition regions or to its scope. A\nnumber of delegations opposed the proposed level of capping,\nlimiting the level of transfer to each Member State to a certain\npercentage of its gross domestic product. Some Member States\nobjected to the so-called reversed safety net, which would limit\nthe scope of support to a certain percentage as compared to its\nlevel during the 2007-2013 period. Some Member States argued for\nco-financing rates of 85% for less developed regions, whereas\nothers pleaded for reducing the rates.
\nThe rules governing the five funds under the common\nstrategic framework: some Member\nStates stressed the importance of macro-economic conditionality.\nOthers were sceptical about it, unless it was extended to other\ntypes of expenditure.
\nThe General Affairs Council of 29 May will hold a\nfirst discussion on a comprehensive version of the negotiating box\ncovering all elements of the MFF negotiating package.
\nMinisters for European Affairs will continue their\nwork on the MFF at an informal meeting in Horsens (Denmark) on 10\nand 11 June.
\nThe European Council will discuss the MFF for the\nfirst time on 28 and 29 June.
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nThe Commission presents an amended proposal for a\nRegulation laying down common provisions for the ERDF, the ESF, the\nCohesion Fund, the EAFRD and the EMFF covered by the Common\nStrategic Framework and general conditions applicable to the\ncohesion policy funds.
\nThis proposal, presented on 6 October 2011, foresaw\nthe adoption of a common strategic framework (CSF) to facilitate\nthe sectoral and territorial coordination of union intervention\nunder the CSF funds and with other relevant Union policies and\ninstruments. The Common Strategic Framework was to establish the\nkey areas of support, territorial challenges to be addressed,\npolicy objectives, priority areas for cooperation activities,\ncoordination mechanisms and mechanisms for coherence and\nconsistency with the economic policies of Member States and the\nUnion.
\nThe proposal foresaw that the CSF would be adopted by\nthe Commission as a delegated act. Both the Council and\nParliament’s Committee on Regional Policy have signalled\nthat they wish to see the CSF adopted as an annex to the regulation\nand not as a delegated act.
\nIn view of this and in order to facilitate a\ncompromise between the institutions, the Commission presents this\namended legislative proposal which splits the elements of the\nCSF between a new annex (Annex I) to the Common Provisions\nRegulation (CPR) and a delegated act.
\nThe new annex contains four sections\non
\n\n1) means to achieve coherence and consistency\nwith the economic policies of Member States and the\nUnion,
\n\n2) coordination mechanisms among CSF Funds and\nwith other relevant Union policies and instruments,
\n\n3) horizontal principles and cross-cutting\npolicy objectives and
\n\n4) arrangements to address territorial\nchallenges.
\nThe delegated act will in turn contain two\nsections:
\n\n1) sections on indicative actions of high\nEuropean added value and corresponding principles for delivery\nand
\n\n2) priorities for cooperation.
\nThe Commission maintains, however, that all\nelements of the CSF, whether included in the annex or in the\ndelegated act, remain non-essential elements for the purpose\nof Article 290 Treaty of the Functioning of the European Union and\ncan thus be amended by delegated act. The essential elements are\ncontained in Articles 11 and 12 of the CPR.
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nThis proposal aims to amend the Commission proposal\ndated 11/09/2012 which concerned the amendment of the Regulation\nlaying down common provisions on the European Regional Development\nFund, the European Social Fund, the Cohesion Fund, the European\nAgricultural Fund for Rural Development and the European Maritime\nand Fisheries Fund covered by the Common Strategic Framework (CSF)\nand laying down general provisions on the European Regional\nDevelopment Fund, the European Social Fund and the Cohesion\nFund.
\nGiven the urgent priority to address youth\nunemployment in the Union's most affected regions, the Commission\nproposes to create a Youth Employment Initiative, funded from a\nspecific allocation and from targeted investment from the European\nSocial Fund (ESF).
\nThe objective of the Initiative is to support young\npeople not in employment, education or training residing in the\neligible regions. The Initiative will be implemented as a part of\nthe Investment for growth and jobs goal.
\nResources for the Youth Employment Initiative will\namount to EUR 6 000 000 000 with at least EUR 3 000 000 000\nfrom ESF targeted investment.
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nThe Council took note of a Presidency progress report\non work undertaken on a package of legislative proposals for the\nEU's cohesion policy for the 2014-20 period.
\nTaking into account the discussion so-far, a set of\nguiding principles for assessment and improvement of the proposal\nof the Commission can be identified:
\n\n· \nsome Commission proposals have raised doubts in\nterms of their conformity to the subsidiarity principle. It\nis therefore crucial to strike the right balance between the\nresponsibilities of Member States and the Commission, especially in\nsuch areas as: the role of country-specific recommendations under\nArticles 121(2) TFEU and the relevant Council recommendations\nadopted under 148(4) TFEU, the mechanisms of thematic\nconcentration, and ex-ante and macroeconomic\nconditionalities;
\n\n· \nthe partnership principle should continue to foster multi-level and bottom-up\nfeatures of Cohesion Policy by involving the relevant partners in\nthe process of strategic programming and implementation according\nto the established modes of cooperation in a given Member\nState;
\n\n· \nflexibility and proportionality\nare necessary in order to accommodate the\ndifferent institutional settings in all Member States and\nregions. Any administrative burden should be well justified by\nclear benefits in terms of effectiveness and efficiency;
\n\n· \nthe multiannual character of Cohesion Policy\nrequires a stable strategic and legal environment for\ninvestment throughout the whole programming period. It is therefore\nindispensible – according to a large majority of the\ndelegations – to give a new impetus to the simplification\nprocess and make the new legal framework of Cohesion Policy\nlighter and more user friendly. This should be done by eliminating\nexcessive details, overlaps and ambiguities.
\nOn the basis of the a questionnaire prepared by the\npresidency, ministers commented on the following issues related to\nstrategic programming and thematic concentration:
\n\n· \noptions for the status of the common strategic\nframework and for its adoption;
\n\n· \nproposed use of country-specific recommendations\nas an instrument for aligning cohesion policy with the broader\nEurope 2020 strategy for growth and jobs;
\n\n· \nbalance between thematic concentration and\nflexibility for Member States and regions in implementing cohesion\npolicy.
\nThe Council reached broad consensus in this regard,\nthereby facilitating early conclusion to negotiations on these\nissues by the incoming presidency.
\nCommon strategic framework: broad consensus was reached on both the status of\nthe common strategic framework and the procedure for its adoption.\nThere was general acceptance that this strategic policy document\nshould be approved by the European Parliament and the Council, and\na majority expressed a willingness to adopt it as an annex to\nthe proposed regulation establishing common provisions for the\nEU's structural and cohesion funds.
\nThere was broad agreement on the desirability of\nlinking cohesion policy objectives with the Europe 2020\nstrategy, whilst ensuring that the specific circumstances of\nindividual regions and territories are taken into account. A large\nmajority of delegations proposed that this be achieved by using\nnational reform programmes (NRPs) as a reference instead of\ncountry-specific recommendations (CSRs) as proposed by the\nCommission.
\nThe reason given by a majority of ministers was that\nexisting mechanisms should be usedas far as possible, rather than\ninstruments with a shorter time horizon requiring annual review of\nstrategic documents, thereby causing an unnecessary administrative\nburden. Ministers also considered that NRPs reflect better the\nspecific circumstances within each Member State than do the\nCSRs.
\nThe Partnership Contract is another key element of the strategic programming\narrangements. Many Member States underlined that they should be\nallowed to adapt the Partnership Contract to their country-specific\nsituation and multi-level governance structures.
\nGenerally, Member States welcomed the possibility\nof preparing multi-fund operational programmes. However, many\nMember States also raised doubts whether an integrated, multi-fund\napproach could really work on the ground.
\nThe Commission proposal to introduce an innovative\npilot instrument of Joint Action Plan was welcomed by Member\nStates but further in-depth examination is necessary.
\nIn the area of the European Territorial Cooperation,\nsome Member States expressed concerns about the extent to which the\nETC should be included in the Partnership\nContract.
\nThematic concentration:\noverall, Member States were supportive of the idea of thematic\nconcentration and the introduction of a menu of thematic\nobjectives. However, a broad majority expressed scepticism\nabout the mechanisms proposed by the Commission in this respect. A\nlarge number of delegations wanted to extend the limits for minimal\nallocations for specific types of interventions. Others proposed\nleaving it to Member States to choose specific intervention types\nfrom the proposed menu.
\nThere was broad agreement on needing greater\nflexibility to take account of regional specificities and\ndifferences, which would mean better results, and that this could\nnot be achieved by an automatic approach providing minimal\nallocations at EU level, nor by imposing a small number of\nintervention types for all Member States.
\nA number of Member States had reservations on whether\nthe ring-fencing of Funds as part of the thematic\nconcentration architecture would be an appropriate tool for this\npurpose, keeping in mind the different starting points of Member\nStates as well as their diverse national policies.
\n\n· \nMore specifically, the proposed ring-fencing of\nat least 20% of the total national ESF allocation to the thematic\nobjective related to social inclusion and poverty was\nquestioned by Member States. Similarly, the ring-fencing of at\nleast 5% of the total national ERDF allocation to urban development\nalso raised doubts.
\n\n· \nFurther, the earmarking of the total national\nERDF allocations to the low-carbon economy thematic\nobjective was viewed by some Member States as too prescriptive\nand did not adequately take into account the contribution of other\nthematic objectives and the Cohesion Fund to low-carbon economy\ngoals.
\n\n· \nSome Member States raised the issue of why in\nthe thematic objectives, no support for large enterprises\nhad been envisaged, while arguing that by assisting large\nenterprises, spill-over gains would be realised and thus also\nbenefit SMEs.
\n\n· \nSeveral Member States questioned the proposal of\nnot allowing more developed regions to invest in basic\ninfrastructure when this is duly justified, especially in the areas\nof ICT (Information and Communication Technologies) and\ntransport. There were also voices supporting investments in\nenergy infrastructures other than those strictly related to the\nlow-carbon economy as well as in tourism.
\nWith regard to European territorial\ncooperation, a significant number of Member States opposed the\nproposal to limit the list of thematic objectives in the\ncross-border and transnational strands to just four.
\nThere was a general support among Member States for\nfurther enhancing the territorial dimension of cohesion\npolicy and for introducing some specialised instruments for\nterritorial development. However, some delegations voiced concerns\nabout whether the variety of territorial development instruments\nwould not result in a fragmentation of cohesion policy\nintervention.
\nSome delegations raised further issues related\nto cohesion policy, such as the \"capping\" of interventions,\nmacroeconomic conditionality, the \"Connecting Europe\" facility for\ntransport, energy and information/communication technologies and\n\"RAL\" (reste à liquider or unspent commitments). These\nissues are related to the EU's multiannual financial framework for\nthe
\n2014-20 which is due to be discussed during the next\ntwo presidencies.
\nMinisters also discussed the modes of\nconditionality proposed by the Commission, i.e. positive and\nnegative incentives for ensuring a high-quality performance for\ncohesion policy.
\nThe Council took note of a Presidency progress report\non work undertaken on a package of legislative proposals for the\nEU's cohesion policy for the 2014-20 period.
\nTaking into account the discussion so-far, a set of\nguiding principles for assessment and improvement of the proposal\nof the Commission can be identified:
\n\n· \nsome Commission proposals have raised doubts in\nterms of their conformity to the subsidiarity principle. It\nis therefore crucial to strike the right balance between the\nresponsibilities of Member States and the Commission, especially in\nsuch areas as: the role of country-specific recommendations under\nArticles 121(2) TFEU and the relevant Council recommendations\nadopted under 148(4) TFEU, the mechanisms of thematic\nconcentration, and ex-ante and macroeconomic\nconditionalities;
\n\n· \nthe partnership principle should continue to foster multi-level and bottom-up\nfeatures of Cohesion Policy by involving the relevant partners in\nthe process of strategic programming and implementation according\nto the established modes of cooperation in a given Member\nState;
\n\n· \nflexibility and proportionality\nare necessary in order to accommodate the\ndifferent institutional settings in all Member States and\nregions. Any administrative burden should be well justified by\nclear benefits in terms of effectiveness and efficiency;
\n\n· \nthe multiannual character of Cohesion Policy\nrequires a stable strategic and legal environment for\ninvestment throughout the whole programming period. It is therefore\nindispensible – according to a large majority of the\ndelegations – to give a new impetus to the simplification\nprocess and make the new legal framework of Cohesion Policy\nlighter and more user friendly. This should be done by eliminating\nexcessive details, overlaps and ambiguities.
\nOn the basis of the a questionnaire prepared by the\npresidency, ministers commented on the following issues related to\nstrategic programming and thematic concentration:
\n\n· \noptions for the status of the common strategic\nframework and for its adoption;
\n\n· \nproposed use of country-specific recommendations\nas an instrument for aligning cohesion policy with the broader\nEurope 2020 strategy for growth and jobs;
\n\n· \nbalance between thematic concentration and\nflexibility for Member States and regions in implementing cohesion\npolicy.
\nThe Council reached broad consensus in this regard,\nthereby facilitating early conclusion to negotiations on these\nissues by the incoming presidency.
\nCommon strategic framework: broad consensus was reached on both the status of\nthe common strategic framework and the procedure for its adoption.\nThere was general acceptance that this strategic policy document\nshould be approved by the European Parliament and the Council, and\na majority expressed a willingness to adopt it as an annex to\nthe proposed regulation establishing common provisions for the\nEU's structural and cohesion funds.
\nThere was broad agreement on the desirability of\nlinking cohesion policy objectives with the Europe 2020\nstrategy, whilst ensuring that the specific circumstances of\nindividual regions and territories are taken into account. A large\nmajority of delegations proposed that this be achieved by using\nnational reform programmes (NRPs) as a reference instead of\ncountry-specific recommendations (CSRs) as proposed by the\nCommission.
\nThe reason given by a majority of ministers was that\nexisting mechanisms should be usedas far as possible, rather than\ninstruments with a shorter time horizon requiring annual review of\nstrategic documents, thereby causing an unnecessary administrative\nburden. Ministers also considered that NRPs reflect better the\nspecific circumstances within each Member State than do the\nCSRs.
\nThe Partnership Contract is another key element of the strategic programming\narrangements. Many Member States underlined that they should be\nallowed to adapt the Partnership Contract to their country-specific\nsituation and multi-level governance structures.
\nGenerally, Member States welcomed the possibility\nof preparing multi-fund operational programmes. However, many\nMember States also raised doubts whether an integrated, multi-fund\napproach could really work on the ground.
\nThe Commission proposal to introduce an innovative\npilot instrument of Joint Action Plan was welcomed by Member\nStates but further in-depth examination is necessary.
\nIn the area of the European Territorial Cooperation,\nsome Member States expressed concerns about the extent to which the\nETC should be included in the Partnership\nContract.
\nThematic concentration:\noverall, Member States were supportive of the idea of thematic\nconcentration and the introduction of a menu of thematic\nobjectives. However, a broad majority expressed scepticism\nabout the mechanisms proposed by the Commission in this respect. A\nlarge number of delegations wanted to extend the limits for minimal\nallocations for specific types of interventions. Others proposed\nleaving it to Member States to choose specific intervention types\nfrom the proposed menu.
\nThere was broad agreement on needing greater\nflexibility to take account of regional specificities and\ndifferences, which would mean better results, and that this could\nnot be achieved by an automatic approach providing minimal\nallocations at EU level, nor by imposing a small number of\nintervention types for all Member States.
\nA number of Member States had reservations on whether\nthe ring-fencing of Funds as part of the thematic\nconcentration architecture would be an appropriate tool for this\npurpose, keeping in mind the different starting points of Member\nStates as well as their diverse national policies.
\n\n· \nMore specifically, the proposed ring-fencing of\nat least 20% of the total national ESF allocation to the thematic\nobjective related to social inclusion and poverty was\nquestioned by Member States. Similarly, the ring-fencing of at\nleast 5% of the total national ERDF allocation to urban development\nalso raised doubts.
\n\n· \nFurther, the earmarking of the total national\nERDF allocations to the low-carbon economy thematic\nobjective was viewed by some Member States as too prescriptive\nand did not adequately take into account the contribution of other\nthematic objectives and the Cohesion Fund to low-carbon economy\ngoals.
\n\n· \nSome Member States raised the issue of why in\nthe thematic objectives, no support for large enterprises\nhad been envisaged, while arguing that by assisting large\nenterprises, spill-over gains would be realised and thus also\nbenefit SMEs.
\n\n· \nSeveral Member States questioned the proposal of\nnot allowing more developed regions to invest in basic\ninfrastructure when this is duly justified, especially in the areas\nof ICT (Information and Communication Technologies) and\ntransport. There were also voices supporting investments in\nenergy infrastructures other than those strictly related to the\nlow-carbon economy as well as in tourism.
\nWith regard to European territorial\ncooperation, a significant number of Member States opposed the\nproposal to limit the list of thematic objectives in the\ncross-border and transnational strands to just four.
\nThere was a general support among Member States for\nfurther enhancing the territorial dimension of cohesion\npolicy and for introducing some specialised instruments for\nterritorial development. However, some delegations voiced concerns\nabout whether the variety of territorial development instruments\nwould not result in a fragmentation of cohesion policy\nintervention.
\nSome delegations raised further issues related\nto cohesion policy, such as the \"capping\" of interventions,\nmacroeconomic conditionality, the \"Connecting Europe\" facility for\ntransport, energy and information/communication technologies and\n\"RAL\" (reste à liquider or unspent commitments). These\nissues are related to the EU's multiannual financial framework for\nthe
\n2014-20 which is due to be discussed during the next\ntwo presidencies.
\nMinisters also discussed the modes of\nconditionality proposed by the Commission, i.e. positive and\nnegative incentives for ensuring a high-quality performance for\ncohesion policy.
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\nPURPOSE: to define\nthe next framework for cohesion policy for the period 2014-2020\n(General Regulation).
\nPROPOSED ACT: Regulation of the European\nParliament and of the Council.
\nBACKGROUND: in its proposal for the next multi-annual financial\nframework for the period 2014-2020, the Commission decided that\ncohesion policy should remain an essential element of the next\nfinancial package. It proposed a number\nof important changes to the way cohesion policy is designed and\nimplemented. Concentrating funding on a smaller number of\npriorities better linked to the Europe 2020 Strategy, focusing on\nresults, monitoring progress towards agreed objectives, increasing\nthe use of conditionalities and simplifying the delivery are among\nthe major hallmarks of the proposal.
\nThis proposal is part of a\npackage of legislative measures relating to the Cohesion policy\n2014-2020. This package includes:
\nThe\nEuropean Regional Development Fund (ERDF), the European Social Fund\n(ESF), the Cohesion Fund (CF), the European Agricultural Fund for\nRural Development (EAFRD) and the future European Maritime and\nFisheries Fund (EMFF) ('CSF Funds') pursue complementary\npolicy objectives and their management is shared between the Member\nStates and the Commission. It is therefore important to maximise\nthe effectiveness of all structural instruments in terms of\ndelivering objectives and targets set in programmes and optimise\nsynergies and efficiency of the different instruments.
\nIMPACT\nASSESSMENT: this proposal draws on three Impact Assessments:\none carried out for the ERDF, the CF and the ESF together; and one\neach for the EAFRD and for the EMFF. These impact assessments\nanalysed issues including EU added value, performance and delivery\nof the policies, as well as simplification and harmonisation of\nrules.
\nDelivering European added\nvalue:\nthe preferred option is to establish a strong\nlink to Europe 2020 targets which would contribute most to reaching\nthe headline targets. Strategic planning arrangements which include\nthe Common Strategic Framework at Union level and Partnership\nContracts at national level are considered to ensure effective\ncoordination between Union policies and instruments.
\nIncreasing the performance of the\npolicies: the\npreferred option was the combined option since this option would\nallow addressing the preconditions necessary for the effective use\nof the CSF Funds and would provide incentives to attain predefined\nobjectives and targets and align the implementation of programmes\nwith the Union's economic governance.
\nSimplification - reducing\nadministrative costs and minimising the risk error: a proportional approach entailing risk based control\narrangements, the availability of a wide range of reimbursement\noptions, and advanced eGovernance at the level of Member States and\nregions is the preferred option since it could lead to a\nsignificant potential reduction in the cost of controls and a\ndecline in workload and would also comply better with the\nsubsidiarity principle.
\nLEGAL\nBASIS: Article 177 of the Treaty on the Functioning of the European\nUnion (TFEU).
\nCONTENT: the proposed delivers a common set of basic rules. It is divided\ninto two parts:
\nPART\nI - Common provisions governing all CSF Funds: the general principles governing\nthe support of all CSF Funds will include partnership and\nmulti-level governance, compliance with applicable EU and national\nlaw, promotion of equality between men and women and sustainable\ndevelopment.
\n(1)\nStrategic approach: in order to maximise the impact of the policy\nin delivering European priorities, the Commission proposes to\nreinforce the strategic programming process. This involves defining\na list of thematic objectives in the Regulation in line with the\nEurope 2020 Strategy:
\nPartnership Contracts between the Commission and each Member State will set\nout the commitments of partners at national and regional level and\nthe Commission. They will be linked to the objectives of the\nEurope 2020 Strategy and the National Reform Programmes. They\nwill:
\n(2)\nConditionalities and performance: to reinforce performance, new conditionality\nprovisions will be introduced to ensure that EU funding creates\nstrong incentives for Member States to deliver Europe 2020\nobjectives and targets. Conditionality will take the form of both\n'ex ante' conditions that must be in place before funds are\ndisbursed and 'ex post' conditions that will make the release of\nadditional funds contingent on performance.
\n(3)\nCommon management arrangements: the proposal envisages a management and\ncontrol system which is similar across shared management\ninstruments and is based on common principles. A system of national\naccreditation is put in place to emphasize the commitment of Member\nStates to sound financial management.
\n(4)\nCommunity-led local development: to facilitate the implementation of\nmulti-dimensional and cross-sectoral interventions, the Commission\nproposes to strengthen community-led initiatives, facilitate the\nimplementation of integrated local development strategies and\nformation of local action groups, based on the experience of the\nLEADER approach.
\n(5)\nFinancial instruments: in addition to grant funding, it is proposed\nthat support for enterprises and projects expected to generate\nsubstantial financial returns will be delivered primarily through\ninnovative financial instruments.
\n(6)\nSimplified and streamlined eligibility rules: the aim is to harmonise, to the\nextent possible, these basic rules for instruments implemented\nunder shared management, in order to reduce the multiplicity of\nrules applied on the ground. Simplified costs options such as flat\nrates and lump sums provide the means for Member States to\nintroduce performance-oriented management at the level of\nindividual operations.
\nPART 2 - General provisions applicable to the ERDF,\nthe ESF and the CF: the\nRegulation defines the mission and\ngoals of cohesion policy, the geographical coverage of support,\nfinancial resources and principles of assistance, programming,\nmajor projects, joint action plans, territorial development,\nmonitoring and evaluation, information and communication,\neligibility of expenditure and management and control\nsystems.
\nGeographical coverage of\nsupport: a\ndistinction in relation to less developed, transition and more\ndeveloped regions is made:
\n(a) All\nregions whose GDP per capita for the 2007-2013 period was less than\n75% of the average of the EU-25 for the reference period but whose\nGDP per capita has grown to more than 75% of the EU-27 average will\nreceive two thirds of their 2007-13 allocation.
\n(b)\nMinimum shares for the ESF will be established for each category of\nregions (25% for convergence regions, 40% for transition, and 52%\nfor competiveness regions).
\n(c) The\nCF will support Member States whose GNI per inhabitant is less than\n90% of the EU-27 average in making investments in TEN-T transport\nnetworks and the environment. Part of the Cohesion Fund allocation\n(EUR 10 billion) will be ring-fenced to finance core transport\nnetworks under the Connecting Europe Facility\nExperience.
\nIn\norder to address the issue of absorption of funding, the\nCommission is proposing a number of steps:
\nReinforced strategic programming geared towards\nresults: the\nCommission proposes to introduce the Joint Action Plans, which are\noperations comprising a group of projects as part of an operational\nprogramme, with specific objectives, result indicators and outputs\nagreed between the Member State and the Commission. They offer a\nsimplified management and control system geared towards\nperformance.
\nStreamlining financial management\nand control: the\nCommission's role in the ex ante review of national management and\ncontrol systems will be proportionate, as an obligatory review by\nthe Commission is replaced by a risk based approach. Small\nprogrammes will be exempt from a Commission review. It is proposed to require all Member States to set up\nsystems by the end of 2014 to enable beneficiaries to submit all\ninformation by way of electronic data exchange. The proposal\ntherefore foresees a mandatory annual closure of completed\noperations or expenditure in the framework of the annual clearance\nof accounts.
\nBUDGETARY IMPLICATION: the\nCommission's proposal for a Multiannual Financial Framework\nincludes EUR 376 billion for cohesion policy for the\nperiod 2014-2020. The proposed budget (in billion euros) is broken\ndown as follows:
\nDELEGATED ACTS: this\nproposal contains provisions empowering the Commission to adopt\ndelegated acts in accordance with Article 290 of the Treaty on the\nFunctioning of the European Union (TFEU).
\n