Explanatory Memorandum to COM(2018)498 - Amendment of Regulation (EU) No 1303/2013 as regards the resources for economic, social and territorial cohesion and correction of that Regulation

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1. CONTEXT OF THE PROPOSAL

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(5) of Regulation (EU) No 1303/2013 1 and the annual breakdown of commitment appropriations reflected in Annex VI in order to reflect changes in the financial programming for the Youth Employment Initiative ('YEI'). More specifically, in line with the adopted budget for 2018, commitment appropriations for the specific allocation for the YEI should be increased by an amount of EUR 116.7 million, bringing the overall amount for 2018 up to EUR 350 million. The commitment appropriations for 2020 were adjusted to reflect the frontloading to 2018.

In addition, it is necessary to correct some errors with regard to the amounts and percentages concerning the resources for the Investment for Growth and Jobs goal set out in point (2)(a) of Article 1 of Regulation (EU) 2017/2305, amending Article 92(1) of Regulation (EU) No 1303/2013.

Consistency with existing policy provisions in the policy area

This proposal is the result of the 2018 budgetary decision.

Consistency with other Union policies

The proposal is consistent with other proposals and initiatives adopted by the European Commission.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The review reflects the frontloading of the resources for the specific allocation for the Youth Employment Initiative (YEI) in the 2018 EU budget.

Subsidiarity (for non-exclusive competence)

The proposal complies with the subsidiarity principle.

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 AND IMPACT ASSESSMENTS

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

This is not an initiative within the Regulatory Fitness Programme (REFIT)

Fundamental rights

The proposal has no consequences for the protection of fundamental rights.

4. BUDGETARY IMPLICATIONS

There are changes in commitment appropriations resulting from frontloading of the specific allocation for the YEI. The commitment appropriations for 2018 should be increased by EUR 116.7 million in current prices and the amount for 2020 should be decreased by the same amount.

5. OTHER ELEMENTS

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

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(5) of Regulation (EU) No 1303/2013 and the annual breakdown of commitment appropriations reflected in Annex VI in order to reflect changes in the financial programming for the YEI. More specifically, in line with the adopted budget for 2018, commitment appropriations for the specific allocation for the YEI should be increased by an amount of EUR 116.7 million, bringing the overall amount for 2018 up to EUR 350 million. The commitment appropriations for 2020 were adjusted to reflect the frontloading to 2018.

In addition, it is necessary to correct some errors with regard to the amounts and percentages concerning the resources for the Investment for Growth and Jobs goal set out in point (2)(a) of Article 1 of Regulation (EU) 2017/2305, amending Article 92(1) of Regulation (EU) No 1303/2013.

Article 92(1) of Regulation (EU) No 1303/2013, as amended by Regulation (EU) 2017/2305 reads as follows:

'1. Resources for the Investment for growth and jobs goal shall amount to 96.09% of the global resources (i.e., a total of EUR 317 103 114 309) and shall be allocated as follows:

(a) 48.64% (i.e., a total of EUR 160 498 028 177) for less developed regions;

(b) 10.19% (i.e., a total of EUR 33 621 675 154) for transition regions;

(c) 15.43% (i.e., a total of EUR 50 914 723 304) for more developed regions;

(d) 20.01% (i.e., a total of EUR 66 029 882 135) for Member States supported by the Cohesion Fund;

(e) 0.42% (i.e., a total of EUR 1 378 882 914) as additional funding for the outermost regions identified in Article 349 TFEU and the NUTS level 2 regions fulfilling the criteria laid down in Article 2 of Protocol No 6 to the 1994 Act of Accession.';

That provision should read correctly as follows and should therefore be corrected:

'1. Resources for the Investment for growth and jobs goal shall amount to 96.09 % of the global resources (i.e., a total of EUR 317 073 545 392) and shall be allocated as follows:

(a) 51.52% (i.e., a total of EUR 163 359 380 738) for less developed regions;

(b) 10.82% (i.e., a total of EUR 34 319 221 039) for transition regions;

(c) 16.33 % (i.e., a total of EUR 51 773 321 432) for more developed regions;

(d) 20.89 % (i.e., a total of EUR 66 236 030 665) for Member States supported by the Cohesion Fund;

(e) 0.44 % (i.e., a total of EUR 1 385 591 518) as additional funding for the outermost regions identified in Article 349 TFEU and the NUTS level 2 regions fulfilling the criteria laid down in Article 2 of Protocol No 6 to the 1994 Act of Accession.'