The EC will stimulate economic recovery in regions by simplifying the rules for the management of cohesion funds
These amendments will facilitate the implementation of the 455 programs of the cohesion policy for 2007-2013. The Commision will invest 347,000 million EUR, representing over one third of the EU budget. This is intended to accelerate the flow of investment to the project and the people most affected by the crisis in the regions of Europe.
The European Commission proposes to simplify the management of European funds and simplify some rules for the management of cohesion policy. The aim is to improve the conditions for launching more projects in the regions.
The proposed measures aim to take into account the effects of the crisis in the finances of Member States and regions, which sometimes have difficulties to provide funding for European investments. The Commission intends to facilitate the full use of EU funds under the ESF, as a measure of support to national finances in a context of growth of unemployment, where state budgets are increasingly tight.
These actions are part of a series of measures taken by the European cohesion policy for the purpose of a response to current economic crisis.
These actions are part of a series of measures taken by the European cohesion policy for the purpose of a response to current economic crisis.
Principal measures approved by the Commission
- In 2009 and 2010, if the Member States' request, the Commission may reimburse 100% of public expenditure declared for projects financed by the European Social Fund. States are not obliged to provide a national co-financing, which will accelerate the implementation of projects to support employment. That option does not affect the distribution of funds among the Member States, nor to the total budget for the funds, nor the obligation of States to provide co-financing thereafter.
- To ensure that environmental projects start small magnitude faster, the Commission proposes to create a single category of "major project". Previously, the Commission approved all the projects whose total cost exceeds EUR 25 million for the environment and EUR 50 million for other sectors.
- The rules relating to projects that generate income (eg, toll roads or projects involving the sale or rental of land) have also been simplified to reduce the administrative burden on Member States.
- The program review of cohesion policy will be easier for Member States. Certain provisions concerning the obligation to maintain the investment during a period of five years shall not apply to companies in bankruptcy
- It will encourage investment in sectors related to energy efficiency and using renewable energy in the house.
- At present, the financial benefits are protected only if the Commission approves the project. From this point, the provision for an important project will be protected as soon as the Member State submit the draft to the Commission.
- The European Region Development Fund can support the renovation or construction of housing for groups in situations of social exclusion, in particular gypsies, in both rural and urban areas. Previously, housing was not eligible under the ERDF, and could only be renewed housing in urban areas.