Explanatory Memorandum to COM(2011)611 - Specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal - Main contents
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| dossier | COM(2011)611 - Specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal. |
|---|---|
| source | COM(2011)611  |
| date | 06-10-2011 |
On 29 June 2011, the Commission adopted a proposal for the next multi-annual financial framework for the period 2014-2020: a budget for delivering the Europe 2020 strategy. In its proposal, the Commission decided that cohesion policy should remain an essential element of the next financial package and underlined its pivotal role in delivering the Europe 2020 strategy.
The Commission proposed a number of important changes to the way cohesion policy is designed and implemented. Concentrating funding on a smaller number of priorities better linked to the Europe 2020 Strategy, focusing on results, monitoring progress towards agreed objectives, increasing the use of conditionalities and simplifying the delivery are among the major hallmarks of the proposal.
This Regulation sets out the general provisions governing European Territorial Cooperation. It draws on the work undertaken since the publication of the Fourth Cohesion Report in May 2007 which outlined the main challenges facing regions in the next decades and launched the debate on the future cohesion policy. On 9 November 2010, the Commission adopted the Fifth Cohesion Report which provided an analysis of social and economic trends and outlined orientations for the future cohesion policy.
Cohesion policy is the main investment instrument for supporting the main priorities of the Union as enshrined in the Europe 2020 strategy. It does so by focusing on the countries and regions where needs are greater. One of the greatest successes of the EU has been its capacity to raise living standards for all its citizens. It does this not only by helping poorer Member States and regions to develop and grow but also through its role in the integration of the Single Market whose size delivers markets and economies of scale to all parts of the EU, rich and poor, big and small. The Commission's evaluation of past cohesion policy spending has shown many examples of added value and of growth- and job-creating investment that could not have happened without the support of the EU budget. However, the results also show the effects of dispersion and lack of prioritisation. At a time when public money is scarce and when growth-enhancing investment is more needed than ever, the Commission has decided to propose important changes to cohesion policy.
The proposal is part of the cohesion policy legislative package for the 2014-2020 period. European Territorial Cooperation is one of the goals of cohesion policy and provides a framework for the implementation of joint actions and policy exchanges between national, regional and local actors from different Member States. This is all the more important given that the challenges faced by Member States and regions increasingly cut across national /regional boundaries and require joint, co-operative action at the appropriate territorial level. European Territorial Cooperation can thus also provide an important contribution to fostering the new Treaty objective of territorial cohesion.
European Territorial Cooperation is of particular value because:
· Transboundary problems can most effectively be solved with the cooperation of all regions concerned to avoid disproportionate costs for some, and free-riding by others (e.g. cross-border environmental pollution).
· Cooperation can provide an effective mechanism for sharing good practice and learning to spread know-how (e.g. enhancing competitiveness).
· Cooperation can ensure that a solution to a specific problem becomes more effective due to economies of scale and the achievement of a critical mass (establishment of clusters to foster research and innovation).
· Governance can improve as a result of coordination of the sector policies, actions and investments on a cross-border and transnational scale.
· Relations with EU neighbours through cooperation programmes on the EU’s external borders can contribute to safety and stability, and mutually beneficial relationships.
· In some contexts such as sea basins and coastal regions, cooperation and transnational action are indispensable to support growth, employment and eco-system-based management
The overarching policy orientations for future cohesion policy are also applicable in the context of European Territorial Cooperation. The proposed regulation therefore contains the alignment with the Europe 2020 strategy, elements to increase the effectiveness of Fund interventions and an overall simplified approach to implementation.
2. RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS 2.1. Consultation and expert advice
This regulation draws on extensive consultation with stakeholders, including Member States, regions and social and economic partners.
The public consultation on the Conclusions of the 5th Cohesion Report was held between 12 November 2010 and 31 January 2011. A total of 444 contributions were received. Respondents included Member States, regional and local authorities, social partners, European interest organisations, non-governmental organisations, citizens and other stakeholders. The public consultation asked a series of questions about the future of cohesion policy. A summary of the results was published on 13 May 2011[1].
The results of the ex-post evaluations carried out on the INTERREG 2000-2006 programmes[2], the parliamentary 'Report on objective 3' [3] and a broad range of studies and expert advice for example through the INTERACT programme were used as input. Expert advice was also provided through the High Level Group reflecting on future Cohesion Policy, composed of experts from national administrations, which held two meetings with more specific discussions on European Territorial Cooperation.
The results of the public consultation on the 5th cohesion report show a broad consensus about the high value added of European Territorial Cooperation. There are, however, calls for a greater standardisation of rules and procedures across Member States i. A number of Member State contributions also underline the need for a separate regulation or a separate legal framework for cooperation programmes to better address the multi-national context [5].
A key point from the ex-post evaluation is that territorial cooperation programmes do not always focus on a limited number of priority topics, but adopt rather broad intervention strategies, making it difficult to achieve clearly-identifiable impacts[6]. Another major recommendation relates to the need to establish more pro-active and ongoing interaction with the Convergence and Competitiveness programmes and other territorial cooperation programmes operating in the programme area, to ensure complementarity, coordination and synergies. The evaluation explicitly recommends a more complementary and integrated approach be developed for the period post-2013[7].
Likewise, experts underlined in the High Level Group the need for more coordination and strategic focus, both at general policy and individual programme level[8]. They also indicated that there should be strengthened links to the Convergence and Competitiveness programmes and called for specific regulatory provisions on territorial cooperation and overall harmonisation of applicable rules and simplification[9].
The parliamentary report underlined the need to better integrate European Territorial Cooperation at all levels of strategic planning, better coordinate programming between cooperation and regional programmes and to simplify implementation through a separate regulation for cooperation to better reflect the specificities[10].
The options assessed in the impact assessment relate to the improvement of the strategic focus and of the coordination between cooperation and regional programmes. The options considered included the continuation of the status quo (broad priorities, no formal link between cooperation and regional programmes), a scenario focused on thematic concentration and integration of cooperation in overall strategic framework (limited number of thematic objectives that cross-border and transnational programmes can choose, integration of cooperation aspects in Common Strategic Framework and Partnership Contract) and finally a scenario that would fully integrate cooperation aspects in the regional programmes without the need for separate cooperation programmes. The second option was chosen as the preferred one since it will ensure a better focus on European priorities, strengthen the programme intervention logic and ensure a better link and coherence with regional programmes.
As a result of the consultations and impact assessment carried out and the input received, the legislative proposal for the Common Provisions Regulation foresees a firm integration of European Territorial Cooperation both in the Common Strategic Framework and the Partnership contract as well as in the related reporting procedures. In addition, elements on coherence between the regional and cooperation programmes operating in the same area are part of the programming documents. This will improve coherence of cohesion policy as a whole.
In order to provide a more tailor-made frame for cooperation programmes, a separate regulation for European Territorial cooperation programmes is proposed. This regulation contains provisions on thematic concentration and an increased focus on results as well as a number of simplification elements (see below).
Contents
Article 174 of the Treaty on the Functioning of the European Union (TFEU) calls for action by the European Union to strengthen its economic, social and territorial cohesion and promote overall harmonious development by reducing disparities between the levels of development of regions and promoting development in least favoured regions.
The goal of economic, social and territorial cohesion is promoted through three EU funds. As stipulated in Article 176 of the TFEU, the aim of the ERDF is promote the development and structural adjustment of lagging regions and of declining industrial regions.
Article 174 of the TFEU states that particular attention shall be paid to rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and island, cross-border and mountain regions.
Article 349 of the TFEU states that specific measures shall be adopted to take account of the structural social and economic situation of the outermost regions, which is compounded by certain specific features which severely restrain their development. The specific measures shall include conditions of access to the structural funds.
A separate regulation is proposed for European Territorial Cooperation to take better account of multi-country context of the programmes and make more specific provisions for cooperation programmes and operations, as has been requested by a large number of stakeholders. The proposal establishes the scope of the European Regional Development Fund with regard to the European Territorial Cooperation goal. It defines the priority objectives and organisation of the ERDF, eligibility criteria, financial resources available and criteria for their allocation. It also sets the implementation arrangements, including provisions for financial management and control. The Common Provisions Regulation and the ERDF regulation both apply subject to the specific provisions contained in this regulation.
The legislative instrument, and the type of measure (i.e. funding) are both defined in the TFEU, which provides the legal basis for the Structural Funds, and states that the tasks, priority objectives and the organisation of the Structural Funds shall be defined in regulations. As indicated above, the proposal to have a separate regulation is justified given that the general provisions applying to the Funds and the ERDF regulation need to be translated into a cooperation context.
The Commission's proposal for the Multi-Annual Financial Framework foresees an amount of EUR 376 billion for economic, social and territorial cohesion for the period 2014-2020.
Proposed budget 2014-| EUR billion
Less developed regions Transition regions More developed regions Territorial cooperation Cohesion fund Extra allocation for outermost and sparsely populated regions| 162,6 39 53,1 11,7 68,7 0,926
Connecting Europe Facility for transport, energy and ICT| EUR 40 billion (with an additional EUR 10 billion ring fenced inside the Cohesion Fund)
*All figures in constant 2011 prices
The proposed regulation sets out the division of the funding foreseen for Territorial Cooperation between the different cooperation components as follows:
(a) 73,24 % (i.e., a total of EUR 8 569 000 003) for cross-border cooperation;
(b) 20,78 % (i.e., a total of EUR 2 431 000 001) for transnational cooperation;
(c) 5,98 % (i.e., a total of EUR 700 000 000) for interregional cooperation.
The aim of a separate regulation for ETC is to allow clearer presentation of the specificities of ETC to facilitate implementation , since terminology can be directly adapted to the multi-country context of cooperation programmes. The proposal thus makes references to third country participation where necessary to better reflect the reality of cooperation. It also contains more systematic references to the role that European Groupings of Territorial Cooperation (EGTC) can play in a cooperation context.
The regulation establishes the scope of the ERDF with regard to the European territorial cooperation goal.
The proposal sets out the financial resources available for each strand and the criteria for their allocation to Member States. This also includes the continuation of the mechanism for the transfer of resources for cooperation activities at the external borders of the Union, to be supported under the European Neighbourhood and Partnership Instrument and the instrument for Pre-Accession Assistance. Synergies and complementarity between programmes under the European Territorial Cooperation goal and programmes financed under external instruments shall be promoted.
A new element in the proposal are the provisions on thematic concentration and investment priorities. This is to be seen in the overall context of improving the strategic focus of programmes and their results orientation. Programmes can choose a limited number of priorities from a thematic menu with corresponding investment priorities, thus ensuring the focus on European priorities and interventions where cooperation will yield most added value. In addition, selection criteria have been defined more strictly to ensure that funding is given to genuinely joint operations. Programmes will also contain a performance framework defining programme-specific milestones against which progress in implementation can be assessed.
The 2007-2013 programming period has seen the emergence of new forms of territorial cooperation, tailor-made responses to address macro-regional challenges. At the request of the European Council, two macro-regional strategies have been prepared by the Commission for the Baltic Sea and the Danube Regions respectively[11]. In addition, a significant component of the Integrated Maritime Policy concerns the systematic approach to integrated policy action under maritime and coastal policies in the context of sea-basins and ecosystems. Macro-regional and sea-basin strategies are broad-based integrated instruments covering several Member States and regions focusing on the alignment of policies and funding to increase policy coherence and overall impact of public spending. Given the possible overlap between existing and future macro-regions, sea-basins and transnational programme areas, the proposed regulation explicitly foresees that transnational cooperation can also support the development and implementation of macro-regional strategies and sea-basin programmes (including the ones established on the external borders of the EU).
The implementation modalities have been streamlined for cooperation programmes. The number of authorities involved in programme implementation has been reduced and roles and responsibilities further clarified.. Content requirements for cooperation programmes and implementation reports have been made more precise in order to reduce administrative burden for programme authorities. Common indicators have been defined to better capture the outputs of and increase the overall orientation on results.
The proposal foresees a greater harmonisation of rules. Eligibility rules will be either fixed at EU level or by the Monitoring Committee for the programme as a whole. National rules will only apply in the absence such rules. This will also facilitate a joint approach in carrying out the management verifications and audits by the audit authority and thus contribute to greater harmonisation in this field.
Finally, an extension of the deadline for the de-commitment rule and specific provisions for the application of the rules on state aid and the conversion of foreign currencies into Euro will further facilitate programme implementation.