Explanatory Memorandum to COM(2015)365 - Amendment of the regulation on strucutral funds as regards specific measures for Greece with regard to co- and prefinancing

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier COM(2015)365 - Amendment of the regulation on strucutral funds as regards specific measures for Greece with regard to co- and prefinancing .
source COM(2015)365 EN
date 17-07-2015


1. CONTEXT OF THE PROPOSAL

The financial crisis had led to persistently negative growth rates in Greece and to serious liquidity problems and a lack of public funds available for much needed investments to boost growth and job creation. Therefore, as an exceptional measure and given the unique situation this has created in Greece, the Commission in its Communication 'A new start for Jobs and Growth in Greece' proposes three elements to ensure that the available EU funding from the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF) and the European Maritime and Fisheries Fund (EMFF), is effectively used for investments on the ground and reaches beneficiaries as rapidly as possible. In this context, the Commission proposes to increase the level of initial pre-financing of the funding available for the 2014-2020 period for cohesion policy programmes under the Investment for Growth and Jobs Goal and programmes supported by the EMFF to give an immediate boost to investment. In addition, in order to improve the effective use of available cohesion policy funding for the financing of operations under programmes adopted for the 2007-2013 period, it proposes to increase the maximum co-financing rates and to raise the ceiling for payments to programmes at the end of the programming period.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

It is proposed to introduce an additional paragraph in Article 134 of Regulation (EU) No 1303/2013 to provide for additional initial pre-financing for 2014-2020 cohesion policy operational programmes under the Investment for Growth and Jobs Goal and for programmes financed from the EMFF in Greece. It is also proposed to add three additional paragraphs in Article 152 of Regulation (EU) No 1303/2013 to allow for the ceiling for the cumulative total of pre-financing and interim payments to be 100% and to increase the co-financing rate for 2007-2013 operational programmes for the Convergence and the Regional competitiveness and employment objectives in Greece to 100%.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

There was no consultation of external stakeholders.

4. BUDGETARY IMPLICATIONS

The proposed modification does not imply any changes in the Multiannual Financial Framework annual ceilings for commitments and payments as per Annex I of Regulation (EU) No 1311/2013. The proposal consists of frontloading payment appropriations and is budgetary neutral over the 2014-2020 period.

The annual breakdown of commitment appropriations for the European Regional Development Fund, the European Social Fund and the Cohesion Fund remain unchanged.

The additional payment appropriations necessary to cover the immediate consequence of an increase of 2007-2013 co-financing rates and removal of the ceiling for payments are EUR 500 million in 2015 and EUR 500 million for the additional initial pre-financing in 2015.

These additional payment appropriations can potentially be covered by payment appropriations foreseen for interim payments for the 2014-2020 programmes depending on the progress of submission of interim payment applications in 2015. The submission of payment applications could be affected by the delayed designation of programme authorities by Member States, which is a condition for submitting interim payment applications. The Commission will monitor the situation and make appropriate proposals if needed.

The additional pre-financing of EUR 500 million for 2016 was however not foreseen in the draft budget 2016. Nor was the impact in 2016 of the increase in the maximum co-financing rates and in the ceiling for payments for 2007-2013 programmes. The Commission is therefore likely to propose to cover the additional payment needs through an amending letter to the 2016 draft budget taking into account revised Member States forecasts, the on-going adoption of programmes and state of play of designation of programme authorities.

The estimated impact on 2017 will be included in the next budgetary procedure.

5. OTHER ELEMENTS

The proposal contains reporting arrangements concerning the implementation of these exceptional measures.