New Cohesion Policy
For the next long-term EU budget 2021-2027, the Commission proposes to modernise Cohesion Policy, the EU's main investment policy and one of its most concrete expressions of solidarity.
Cohesion Policy: more flexibility, fewer formalities and easier synergies with the Juncker Plan - (09/07/2018)
The Commission welcomes yesterday’s vote of the European Parliament on its proposal to revise the rules on European funds 2014-2020, which aims to halve the current body of rules by making them both clearer and simpler to apply at all levels.
The Commissioner for Regional Policy, Corina Creţu, explained: "Simplification is one of the major areas of the European 2021-2027 budget, but the Juncker Commission is already working on it for the current period, with the aim of making life easier for local authorities and those receiving the funds, especially SMEs."
The following will change when the revised rules come into effect at the end of July:
1. more possibilities for combinations between the European Fund for Strategic Investments (EFSI), the core of the Juncker Plan, and Cohesion Policy funds: no further need for national co-financing when the latter are invested in an EFSI project, and the possibility of covering the first risk bucket;
2. less formality for those receiving the funds: they will be able to have their costs reimbursed by the EU more easily. Beneficiaries and managing authorities will be able to focus on results rather than on the collation and checking of financial documents.
The “single audit” principle is extended and the Commission will be able to rely more on evaluations carried out by its international partners and the Member States.
Finally, the revised rules make it easier for Member States to finance projects aimed at integrating migrants with their 2014-2020 cohesion budgets and to combat fraud more effectively.
Panorama 65: Cohesion Policy: powering ahead to a smarter future - (04/07/2018)
The Summer issue of Panorama magazine, now available to download, looks to the future and considers the European Commission’s proposed budget for the 2021-2027 funding period. As well as an introductory article outlining the proposals and how they hope to reform Cohesion Policy, we have an exclusive interview with Commissioner Creţu outlining the main developments and their reasoning, and we feature initial reactions from a variety of stakeholders across Europe.
Our focus this time is on Ireland, which is currently celebrating 45 years of EU membership. In an interview with Minister for Public Expenditure Paschal Donohoe and through a selection of projects we show how ERDF funding has helped Ireland become more innovative and competitive.
We reveal the 21 finalists for this year’s Regiostars awards, and preview the themes and details of the next European Week of Regions and Cities, taking place in Brussels in early October. We also explore a variety of cultural heritage projects supported by the ERDF, to celebrate the European Year of cultural Heritage, and our Captured on Camera section highlights innovation in Poland. We report on the recent Good Governance conference and survey the variety of initiatives helping administrative capacity building across the EU, and follow the continuing adventures of our young European social media stars crossing the continent as part of the EU Road Trip project. The projects section visits Italy, France and Bulgaria.
Regional Development and Cohesion Policy beyond 2020: The New Framework at a glance
A focus on five investment priorities, where the EU is best placed to deliver
Five main objectives will drive EU investments in 2021-2027:
Regional development investments will strongly focus on objectives 1 and 2. 65% to 85% of ERDF and Cohesion Fund resources will be allocated to these priorities, depending on Member States’ relative wealth.
Smarter Europe, through innovation, digitisation, economic transformation and support to small and medium-sized businesses
a Greener, carbon free Europe, implementing the Paris Agreement and investing in energy transition, renewables and the fight against climate change
a more Connected Europe, with strategic transport and digital networks
a more Social Europe, delivering on the European Pillar of Social Rights and supporting quality employment, education, skills, social inclusion and equal access to healthcare
a Europe closer to citizens, by supporting locally-led development strategies and sustainable urban development across the EU.
A more tailored approach to regional development
Cohesion Policy keeps on investing in all regions, still on the basis of 3 categories (less-developed; transition; more-developed).
The allocation method for the funds is still largely based on GDP per capita. New criteria are added (youth unemployment, low education level, climate change, and the reception and integration of migrants) to better reflect the reality on the ground. Outermost regions will continue to benefit from special EU support.
Cohesion Policy further supports locally-led development strategies and empowers local authorities in the management of the funds. The urban dimension of Cohesion Policy is strengthened, with 6% of the ERDF dedicated to sustainable urban development, and a new networking and capacity-building programme for urban authorities, the European Urban Initiative.
Simplification: shorter, fewer, clearer rules
For businesses and entrepreneurs benefiting from EU support, the new framework offers less red tape, with simpler ways to claim payments using simplified cost options. To facilitate synergies, a single rulebook now covers 7 EU funds implemented in partnership with Member States (“shared management”). The Commission also proposes lighter controls for programmes with good track record, with an increased reliance on national systems and the extension of the “single audit” principle, to avoid duplication of checks.
A more flexible framework
The new framework combines the necessary stability in investment planning with the appropriate level of budgetary flexibility to cope with unforeseen events. A mid-term review will determine if changes in the programmes are needed for the last two years of the funding period, based on emerging priorities, performance of the programmes and the most recent Country-Specific Recommendations.
Within certain limits, transfers of resources will be possible within programmes without the need for a formal Commission approval. A specific provision makes it easier to mobilise EU funding as of day one in the event of a natural disaster.
A strengthened link with the European Semester and the Union’s economic governance
Cohesion Policy supports reforms for an investment-friendly environment, where businesses can thrive. Full complementarity and coordination with the new, enhanced Reform Support Programme will be ensured.
Country-Specific Recommendations formulated in the context of the European Semester will be taken into account twice over the budgetary period: in the beginning, for the design of Cohesion Policy programmes, and during the mid-term review. To further set the right conditions for growth and job creation, new “enabling” conditions will help remove barriers to investments. Their application will be monitored throughout the financial period.
More opportunities for synergies within the EU budget toolbox
The single rulebook covering Cohesion Policy funds and the Asylum and Migration Fund will facilitate the setting up of local migrant integration strategies supported by EU resources used in synergy; the Asylum and Migration Fund will focus on migrants’ short-term needs upon arrival while Cohesion Policy will support their social and professional integration. Outside of the single rulebook, synergies will be made easier with other EU instruments, like the Common Agricultural Policy, Horizon Europe, the LIFE programme or Erasmus+.
Interreg: removing cross border obstacles and supporting interregional innovation projects
Interregional and cross-border cooperation will be facilitated by the new possibility for a region to use parts of its own allocation to fund projects anywhere in Europe jointly with other regions.
The new generation of interregional and cross-border cooperation (“Interreg”) programmes will help Member States overcome cross-border obstacles and develop joint services. The Commission proposes a new instrument for border regions and Member States eager to harmonise their legal frameworks, the European Cross-Border Mechanism.
Building on a successful pilot action from 2014-2020, the Commission proposes to create the Interregional Innovative Investments. Regions with matching ‘smart specialisation’ assets will be given more support to build pan-European clusters in priority sectors such as big data, circular economy, advanced manufacturing or cybersecurity.
Reinforced rules for better performing EU investments
All programmes will still have a performance framework with quantifiable targets (number of jobs created or additional access to broadband). The new framework introduces an annual performance review, in the form of a policy dialogue between programme authorities and the Commission. Performance of the programmes will also be assessed during a mid-term review. For transparency reasons, and so citizens can follow the progress made, Member States will have to report all implementation data every two months and the Cohesion Open Data Platform will be automatically updated.
An increased use of financial instruments
Grants alone cannot address the significant investment gaps. They can be efficiently complemented by financial instruments, which have a leverage effect and are closer to the market. On a voluntary basis, Member States will be able to transfer a part of their Cohesion Policy resources to the new, centrally managed InvestEU fund, to access the guarantee provided by the EU budget. Combining grants and financial instruments is made easier and the new framework also includes special provisions to attract more private capital.
More communication efforts to improve the visibility of Cohesion Policy
For a Europe ever closer to citizens, more emphasis is put on the need to better communicate the positive results of Cohesion Policy. Member States and regions have reinforced requirements in terms of communication, such as the organisation of events for the opening of big EU-funded projects and the development of social media outreach plans.
At the same time, communication on EU-funded projects is simplified, with a single branding covering all different EU funds, a single portal displaying all available funding for businesses and a single project database run by the Commission.
Tour des capitales
The Commission proposals will be presented:
- Estonia (4-5/06/2018)
- Bulgaria (7-8/06/2018)
- Slovakia (12/06/2018)
- Luxembourg (13/06/2018)
- Czech Republic (15/06/2018)
- Austria (18/06/2018)
- Portugal (19/06/2018)
- Poland (20-21/06/2018)
- Spain (21/06/2018)
- Ireland (22/06/2018)
- Germany (22/06/2018)
- Lithuania (26-27/06/2018)
- Malta (27-28/06/2018)
- Finland (29/06/2018)
- Netherlands (29/06/2018)
- Greece (29/06/2018)
- Denmark (02/07/2018)
- Croatia (03/07/2018)
- Cyprus (03/07/2018)
- Slovenia (04/07/2018)
- Sweden (04/07/2018)
- Belgium (06/07/2018)
- France (10/07/2018)
- Latvia (11/07/2018)
- Hungary (16/07/2018)