Explanatory Memorandum to COM(2017)565 - Amendment of Regulation (EU) No 1303/2013 as regards the resources for economic, social and territorial cohesion and for two other goals - Main contents
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| dossier | COM(2017)565 - Amendment of Regulation (EU) No 1303/2013 as regards the resources for economic, social and territorial cohesion and for two ... |
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| source | COM(2017)565  |
| date | 05-10-2017 |
1. CONTEXTOFTHEPROPOSAL
• Reasons for and objectives of the proposal
The objective of the proposal is to adapt the amounts of resources available for the Investment for growth and jobs goal and for the European territorial cooperation goal set out in Articles 91(1) and 92(1) and (5) of Regulation (EU) No 1303/20131 and the annual breakdown of commitment appropriations reflected in Annex VI to decisions adopted since the adoption of that Regulation. Firstly, to adapt the amounts to the result of the technical adjustment exercise in accordance with Article 92(3) of that Regulation; secondly, to reflect the different transfers decided on the basis of Articles 25, 93 and 94 of that Regulation affecting the global amounts per year; thirdly, to include the increase of the Youth Employment Initiative ('YEI') until 2020 by an total amount of EUR 1.2 billion in current prices for the specific allocation for the YEI, which needs to be complemented by at least EUR 1.2 billion from targeted ESF investment; and fourthly to reflect the transfer of some of the 2014 commitment appropriations to subsequent years because of the adoption of new programmes after 1 January 2015. The results of the technical adjustment and the transfers decided on the basis of Articles 25, 93 and 94 of that Regulation were already addressed in Commission Implementing Decision (EU) 2016/19412.
The proposal also reflects that Cyprus was to become newly eligible for support from the Cohesion Fund and was no longer to receive support from the Cohesion Fund on a transitional and specific basis as of 1 January 2017. This had already been addressed in Commission Implementing Decision (EU) 2016/19163.
The technical adjustment exercise has its origin in Article 7 of Council Regulation (EU) No 1311/20134 to take account of the particularly difficult situation of Member States suffering from the crisis and to review in 2016 the total allocation for the Investment for growth and jobs goal.
Regulation (EU) 2016/2135 of the European Parliament and of the Council of 23 November 2016 amending Regulation (EU) No 1303/2013 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability (OJ L 338, 13.12.2016, p. 34).
Commission Implementing Decision (EU) 2016/1941 of 3 November 2016 amending Implementing Decision 2014/190/EU setting out the annual breakdown by Member State of global resources for the European Regional Development Fund, the European Social Fund and the Cohesion Fund under the Investment for growth and jobs goal and the European territorial cooperation goal, the annual breakdown by Member State of resources from the specific allocation for the Youth Employment Initiative together with the list of eligible regions, and the amounts to be transferred from each Member State's Cohesion Fund and Structural Funds allocations to the Connecting Europe Facility and to aid for the most deprived for the period 2014-2020 (notified under document C(2016) 6909) (OJ L 299, 5.11.2016, p. 61).
Commission Implementing Decision (EU) 2016/1916 of 27 October 2016 amending Implementing Decision 2014/99/EU setting out the list of regions eligible for funding from the European Regional Development Fund and the European Social Fund and of Member States eligible for funding from the Cohesion Fund for the period 2014-2020 (notified under document C(2016) 6820) (OJ L 296, 1.11.2016, p. 15).
Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884).
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Article 25 sets out a mechanism regarding the management of technical assistance for Member States with temporary budgetary difficulties, i.e. the transfer of part of that technical assistance to the technical assistance at the initiative of the Commission.
Under certain conditions, Article 93 allows for the transfer of resources between categories of regions and Article 94 for the transfer of resources between goals.
• Consistency with existing policy provisions in the policy area
This proposal is the result of the provisions of Article 92(3) regarding the review of the allocations of cohesion policy for the years 2017-2020, the decisions to transfer resources between categories and goals under Articles 93 and 94, the decision to extend the YEI to the years 2017 to 2020 and the decision to transfer some commitment appropriations of 2014 to subsequent years.
• Consistency with other Union policies
The proposal is consistent with other proposals and initiatives adopted by the European Commission as a response to the financial crisis.
2. LEGALBASIS, SUBSIDIARITYAND PROPORTIONALITY
• Legal basis
Article 92(3) of Regulation (EU) No 1303/2013 provides that, in 2016, the Commission shall, in its technical adjustment for the year 2017 and in accordance with Articles 4 and 5 of Regulation (EU, Euratom) No 1311/2013, review the total allocations under the Investment for growth and jobs goal of each Member State for 2017-2020, applying the allocation method set out in paragraphs 1 to 16 of Annex VII on the basis of the most recent statistics available.
That review of the total allocations also reflects the results of a number of transfers:
Article 25 sets out a mechanism regarding the management of technical assistance for Member States with temporary budgetary difficulties, i.e. the transfer of part of that technical assistance to the technical assistance at the initiative of the Commission.
Under certain conditions, Article 93 allows for the transfer of resources between categories of regions and Article 94 for the transfer of resources between goals.
The review of the total allocations also reflects the extension of the YEI to 2017-2020.
Finally, the revised annual breakdown of Annex VI reflects the amendment of the Council Regulation (EU, Euratom) No 1311/2013 to transfer some commitment appropriations of 2014 to subsequent years.
• Subsidiarity (for non-exclusive competence)
The proposal complies with the subsidiarity principle to the extent that this is a technical result of the implementation of the provisions set out in Article 92(3) of Regulation (EU) No 1303/2013, of the application of Articles 93 and 94 and of the decision to extend the YEI to the period 2017 to 2020.
• Proportionality
The proposal is limited to the technical adjustments necessary.
• Choice of the instrument
Proposed instrument: amendment of the current regulation.
The Commission has explored the scope for manoeuvre provided by the legal framework and considers it necessary to propose amendments to Regulation (EU) No 1303/2013.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS ANDIMPACTASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
There was no ex-post evaluation/or fitness checks of the existing legislation.
• Stakeholder consultations
There was no consultation of external stakeholders.
• Collection and use of expertise
Use of external expertise has not been necessary.
• Impact assessment
Not applicable.
• Regulatory fitness and simplification
Contents
• Fundamental rights
The proposal has no consequences for the protection of fundamental rights.
4. BUDGETARYIMPLICATIONS
There is an impact on commitment appropriations resulting from the positive net effect equal to EUR 4 billion (in 2011 prices) of the technical adjustment provided by Article 92(3) and by the decision to extend the YEI to the years from 2017 to 2020 by a total amount of EUR 1.2 billion in current prices for the specific allocation for the YEI, which needs to be complemented by at least EUR 1.2 billion from targeted ESF investment. These additional resources will also generate needs for additional payment appropriations for the years 2018 to 2020.
The ceilings for commitment appropriations and payment appropriations for heading 1B are therefore increased as expressed in the Communication to the Council and the European Parliament [COM(2016) 311 final] on the Technical adjustment of the financial framework for 2017 in line with movements in GNI and adjustment of cohesion policy envelopes. Given that most of the payments related to this increase in commitments are expected to occur post-2020, the increase in the payment ceilings remains limited.
5. OTHERELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
Not applicable.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
Based on Article 7 of Council Regulation (EU, Euratom) No 1311/2013, the Commission had to review in 2016 all Member States’ total allocations for the “Investment for Growth and Jobs” goal of cohesion policy for 2017-2020, applying the allocation method laid down in the relevant basic act (Annex VII of the Regulation (EU) No 1303/2013) on the basis of the most recent statistics available and of the comparison, for the capped Member States, between the cumulated national GDP observed for the years 2014-2015 and the cumulated national GDP estimated in 2012. The allocations were adjusted whenever there was a cumulative divergence of more than +/- 5%. Moreover, at the same time, Cohesion Fund eligibility was reviewed and in case a Member State becomes newly eligible for the Cohesion Fund these amounts would be added to the funds allocated to the Member State concerned for the years 2017 to 2020.
The review covers the following elements:
a) For all Member States, the review of allocations for 2017-2020 based on the latest available statistics and applying the same method as for the establishment of the original allocations described in paragraphs 1 to 16 of Annex VII of Regulation (EU) No 1303/2013;
b) For the capped Member States (Bulgaria, Estonia, Croatia, Hungary, Lithuania, Latvia, Poland, Romania, Slovakia), the comparison of the observed GDP levels for 2014 and 2015 to the ones forecasted for the same two years in 2012;
c) The review of the Cohesion Fund eligibility on the basis of GNI/head data for the period 2012-2014 in comparison to the EU-27 average.
The exercise resulted in a cumulative divergence of more than +/– 5 % between the total and the revised allocations in Belgium, the Czech Republic, Denmark, Estonia, Ireland, Greece, Spain, Croatia, Italy, Cyprus, the Netherlands, Slovenia, Slovakia, Finland, Sweden and the United Kingdom. The adjustment in the respective resources were published in the Communication to the Council and the European Parliament [COM(2016) 311 final] on the Technical adjustment of the financial framework for 2017 in line with movements in GNI and adjustment of cohesion policy envelopes.
The review of the Cohesion Fund eligibility results in one case of eligibility change with Cyprus becoming fully eligible for Cohesion Fund support in 2017-2020, resulting in an additional amount of EUR 19.4 million.
In accordance with Article 94(2) of Regulation (EU) No 1303/2013 the Commission accepted a proposal submitted by Denmark to transfer a part of its appropriations for the European territorial cooperation goal to the Investment for growth and jobs goal.
Lastly, the Council decided on 20 June 2017 to extend the YEI until 2020 with an amount of EUR 1.2 billion in current prices for the specific allocation for the YEI broken down as
follows: EUR 500 million in 2017 and then EUR 233.3 million per year for the period 2018-2020.