Considerations on COM(2017)826 - Amending regulation 1303/2013 on common provisions for EU funds (ERDF, ESF, Cohesion Fund, EAFRD, EMFF) as regards support to structural reforms in Member States

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(1) Since the economic governance of the Union contributes to economic, social and territorial cohesion, it should be possible to support reform commitments undertaken by Member States to implement relevant Council recommendations or to maximise the growth and competitiveness impact of the cohesion policy funds as a specific form of support implemented in direct management. 

(2) In order to facilitate reforms conducted by the Member States in the context of the economic governance process, it is necessary to open the possibility to partially or fully allocate the performance reserve set up by Article 20 of the Regulation (EU) 1303/2013 3 to support reform commitments undertaken by the Member States.

(3) Any reallocation from the performance reserve should be subject to the fulfilment of commitments with respect to implementing reforms identified in the European Semester process. Priority should be given for the implementation of structural reforms which are expected to contribute most to the resilience of domestic economies and have positive spill-over effects on other Member States. These include reforms in product and labour markets, tax reforms, the development of capital markets, reforms to improve the business environment as well as investment in human capital and public administration reforms. 

(4) It is appropriate that Member States propose a detailed set of measures for the implementation of the structural reforms which should contain milestones and targets and a timetable of not more than three years 

(5) Support to reform commitments should take the form of financing not linked to cost referred to in Article 121(1)(e) of Regulation (EU) … [Revised Financial Regulation] under direct management. The amount allocated to the implementation of the structural reforms should be proportionate to the nature and importance of the reform and should complement existing Union support to national reforms.

(6) The procedure for the establishment of such commitments, their content and the provisions applicable to this specific form of support should be defined.

(7) In order to allow for the prompt application of the measures provided for in this Regulation, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

(8) Therefore, Regulation (EU) No 1303/2013 should be amended accordingly,