Proposals for the Cohesion Policy 2014-2020

The Commission has published its proposals which will frame cohesion policy for 2014-2020. The first part of the proposal sets out common rules governing the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development (EAFRD), and the European Maritime and Fisheries Fund (EMFF). The second part sets out common rules governing the three main funds delivering the objectives of cohesion policy: the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF).

When adopted, the legislation package will establish a common strategic framework for the ERDF, ESF, CF, the EAFRD and EMFF. A Partnership Contract will be agreed between the Commission and each EU Member State, bringing together all the country’s commitments to delivering European objectives and targets. Before funds are paid out, authorities will have to demonstrate that satisfactory strategic, regulatory and institutional frameworks are in place to ensure the funds are used effectively. The release of additional funds will be dependent on performance. Deficiencies in macroeconomic policy (excessive budget deficits, etc.) will lead to suspension of the cohesion financing. Procedures will be simplified and computerised where possible. Eligibility rules for EU funding instruments will be harmonised.

 

 

EU Flagship Initiative on Resource Efficiency Launched

The European Commission has launched a very important flagship initiative on resource efficiency under the Europe 2020 Strategy. The Commission believes that increasing resource efficiency will be key to securing growth and jobs for Europe. It will bring major economic opportunities, improve productivity, drive down costs and boost competitiveness.

The most important medium-term policy measures are:

• An energy efficiency plan with a time horizon of 2020 which will identify measures to achieve energy savings of 20% across all sectors, and which will be followed by legislation to ensure energy efficiency and savings;

• Proposals to reform the Common Agricultural Policy, the Common Fisheries Policy, Cohesion Policy, energy infrastructure and trans-European networks for transport in the context of the next EU budget to align these areas with the requirements of a resource-efficient, low-carbon economy;

• A new EU biodiversity strategy for 2020 to halt further loss to and restore biodiversity and ecosystem services in the light of pressures on ecosystems;

• Measures to tackle the challenges in commodity markets and on raw materials which will, amongst others, periodically assess critical raw materials and define a trade policy to ensure sustainable supplies of raw materials from global markets. These measures will promote extraction, recycling, research, innovation and substitution inside the EU;

• A strategy to make the EU a ‘circular economy’, based on a recycling society with the aim of reducing waste generation and using waste as a resource;

• Early action on adaptation to climate change to minimise threats to ecosystems and human health, support economic development and help adjust our infrastructures to cope with unavoidable climate change;

• A water policy that makes water saving measures and increasing water efficiency a priority, in order to ensure that water is available in sufficient quantities, is of appropriate quality, is used sustainably and with minimum resource input, and is ultimately returned to the environment with acceptable quality.

Public Consultation on the Future of the Cohesion Policy

The Commission is opening a public consultation on the future of cohesion policy. In its conclusions of the fifth report on economic, social and territorial cohesion the Commission has outlined the main ideas for reform that will be discussed during the consultation. This is a very important exercise in the policy development phase.

The main topics:

1. A new strategic programming approach for cohesion policy, consisting of:

– common strategic framework (CSF) adopted by the Commission translating the targets and objectives of Europe 2020 into investment priorities, and

– a development and investment partnership contract which, based on the common strategic framework, would set out the investment priorities, the allocation of national and EU resources between priority areas and programmes, the agreed conditionalities, and the targets to be achieved.

2. Increasing thematic concentration – Member States and regions should concentrate EU and national resources on a small number of priorities responding to the specific challenges that they face.

3. Strengthening performance through conditionality and incentives – specific binding conditionality in the areas directly linked to cohesion policy would be agreed with each Member State and/or region.

4. Improving evaluation, performance and results – setting of clear and measurable targets and outcome indicators, using impact evaluations.

5. Supporting use of new financial instruments.

6. Introducing a third dimension: territorial cohesion – whether the regulatory architecture of cohesion policy should allow greater flexibility in organising operational programmes in order to reflect the nature and geography of development processes better.

7. Reinforcing partnership – supporting active inclusion, fostering social innovation, developing innovation strategies or designing schemes for regeneration of deprived areas.

8. Financial management – output- or results-based elements for disbursement of the EU contribution, simplified methods of reimbursement.

9. Reducing the administrative burden – alignment of rules on eligibility of expenditures across policy areas, financial instruments and funds.

10. Financial discipline.

11. Financial control – review the procedure for ex-ante assessment of the management and control systems.

12. The architecture of cohesion policy – including regions currently eligible under the ‘convergence’ objective but whose GDP would be higher than 75% of the Union average according to the latest statistics.