[ParlTrack]

Clotilde ARMAND, Olivier CHASTEL, Nicolae ŞTEFĂNUȚĂ, Moritz KÖRNER, Valérie HAYER, Martin HOJSÍK

Proposal for a regulation
Recital 5

(5) An additional exceptional amount of EUR 58 272 800 000 (in current prices) for budgetary commitment from the Structural Funds under the Investment for growth and jobs goal, for the years 2020, 2021 and 2022 should be made available to support Member States and regions most impacted in crisis repair in the context of the COVID-19 pandemic or preparing a green, digital and resilient recovery of the economy, with a view to deploying resources quickly to the real economy through the existing operational programmes. Resources for 2020 stem from an increase of EUR 5 billion in commitment appropriations in the resources available for economic, social and territorial cohesion in the multiannual financial framework for 2014-2020 whereas resources for 2021 and 2022 stem from the European Union Recovery Instrument. Part of the additional resources should be allocated to technical assistance at the initiative of the Commission. The Commission should set out the breakdown of the remaining additional resources for each Member State on the basis of an allocation method based on the latest available objective statistical data concerning Member States’ relative prosperity and the extent of the effect of the current crisis on their economies and societies. The allocation method should include a dedicated additional amount for the outermost regions given the specific vulnerability of their economies and societies. In order to reflect the evolving nature of the effects of the crisis, the breakdown should be revised in 2021 on the basis of the same allocation method using the latest statistical data available by 19 October 2021 to distribute the 2022 tranche of the additional resources.

2020/07/20
Committee: BUDG

Clotilde ARMAND, Nicolae ŞTEFĂNUȚĂ, Martin HOJSÍK

Proposal for a regulation
Recital 5 a (new)

(5a) In the context of economic recovery from the crisis provoked by COVID 19, economically disadvantaged local areas, particularly in rural areas, face serious difficulty in implementing the EU funds. It is therefore essential that the Commission provides technical and administrative assistance to the areas that have been most severely hit by the crisis, so as to ensure that the implementation of the EU financing under REACT-EU is done both efficiently and effectively. Such assistance will also serve as a safeguard preventing the involvement of domestic political factors in the performance of cohesion policy.

2020/07/20
Committee: BUDG

Clotilde ARMAND, Valérie HAYER, Olivier CHASTEL, Moritz KÖRNER, Nicolae ŞTEFĂNUȚĂ, Martin HOJSÍK

Proposal for a regulation
Recital 6

(6) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding. Furthermore, the flexibility of spending of the allocations under REACT-EU demands specific spending control that goes beyond the self-assessment by the Member States and needs therefore to be subjected to the oversight by the Commission, OLAF, EPPO and the Court of Auditors.

2020/07/20
Committee: BUDG

Clotilde ARMAND, Martin HOJSÍK, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Recital 7

(7) In order to allow maximum flexibility to Member States for tailoring crisis repair actions in the context of the COVID-19 pandemic or preparing a green, digital and resilient recovery of the economy, allocations should be established by the Commission at ~~Member State~~NUTS-2 regional level. Furthermore, the possibility for using any additional resources to support aid for the most deprived should also be provided for. In addition, it is necessary to ~~establish ceilings~~allow flexibility concerning the allocation to technical assistance at the initiative of the Member States while also allowing maximum flexibility to the Member States as to its allocation within operational programmes supported by the ERDF or the ESF. It should be clarified that there is no need to respect the ESF minimum share for the additional resources. Taking account of the expected quick spending of the additional resources, the commitments linked to those additional resources should only be decommitted at the closure of the operational programmes.

2020/07/20
Committee: BUDG

Clotilde ARMAND, Nicolae ŞTEFĂNUȚĂ, Martin HOJSÍK, Olivier CHASTEL, Valérie HAYER, Moritz KÖRNER

Proposal for a regulation
Recital 9

(9) In order to complement the actions already available under the scope of support of the ERDF, as extended by Regulations (EU) 2020/460 and (EU) 2020/558 of the European Parliament and of the Council5 , Member States should continue to be allowed to use the additional resources primarily for investments in products and services for health services, for providing support in the form of working capital or investment support to SMEs, in operations contributing to the transition towards a digital and green economy, infrastructure providing basic services to citizens or economic support measures for those regions most dependent on sectors most affected by the crisis. Technical a~~ssistance~~nd administrative assistance in the implementation process should also be supported. It is appropriate that the additional resources are focused exclusively under the new thematic objective “Fostering crisis repair in the context of the COVID-19 pandemic and preparing a green, digital and resilient recovery of the economy”, which should also constitute a single investment priority, to allow for simplified programming and implementation of the additional resources. _________________ 5 Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and (EU) No 508/2014 as regards specific measures to mobilise investments in the healthcare systems of Member States and in other sectors of their economies in response to the COVID-19 outbreak (Coronavirus Response Investment Initiative) (OJ L99, 31.3.2020, p. 5); Regulation (EU) 2020/558 of the European Parliament and of the Council of 23 April 2020 amending Regulations (EU) No 1301/2013 and (EU) No 1303/2013 as regards specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak, (OJ L 130, 23.4.2020, p. 1).

2020/07/20
Committee: BUDG

Clotilde ARMAND, Nicolae ŞTEFĂNUȚĂ, Martin HOJSÍK, Olivier CHASTEL, Valérie HAYER

Proposal for a regulation
Recital 9

(9) In order to complement the actions already available under the scope of support of the ERDF, as extended by Regulations (EU) 2020/460 and (EU) 2020/558 of the European Parliament and of the Council5 , Member States should continue to be allowed to use the additional resources primarily for investments in products and services for health services, for providing support in the form of working capital or investment support to SMEs, in operations contributing to the transition towards a digital and green economy, infrastructure providing basic services to citizens or economic support measures for those regions most dependent on sectors most affected by the crisis. Technical a~~ssistance~~nd administrative assistance in the implementation process should also be supported. It is appropriate that the additional resources are focused exclusively under the new thematic objective “Fostering crisis repair in the context of the COVID-19 pandemic and preparing a green, digital and resilient recovery of the economy”, which should also constitute a single investment priority, to allow for simplified programming and implementation of the additional resources. _________________ 5 Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and (EU) No 508/2014 as regards specific measures to mobilise investments in the healthcare systems of Member States and in other sectors of their economies in response to the COVID-19 outbreak (Coronavirus Response Investment Initiative) (OJ L99, 31.3.2020, p. 5); Regulation (EU) 2020/558 of the European Parliament and of the Council of 23 April 2020 amending Regulations (EU) No 1301/2013 and (EU) No 1303/2013 as regards specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak, (OJ L 130, 23.4.2020, p. 1).

2020/07/20
Committee: BUDG

Clotilde ARMAND, Nicolae ŞTEFĂNUȚĂ, Martin HOJSÍK, Valérie HAYER, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Recital 12

(12) Member States should have the flexibility to allocate the additional resources to new dedicated operational programmes or new priority axes within existing programmes following the consultation with regional and local authorities. In order to allow quick implementation, only already designated authorities of existing operational programmes supported by the ERDF, the ESF, or the Cohesion Fund are allowed to be identified for new dedicated operational programmes. An ex ante evaluation by the Member States should not be required and the elements required for the submission of the operational programme to the Commission’s approval should be limited.

2020/07/20
Committee: BUDG

Clotilde ARMAND, Nicolae ŞTEFĂNUȚĂ

Proposal for a regulation
Recital 14

(14) In order to enable Member States to deploy the additional resources for crisis repair quickly in the context of the COVID-19 pandemic and preparing a green, digital and resilient recovery of the economy within the current programming period, it is justified to exempt, on an exceptional basis, Member States from the need to comply with ex ante conditionalities and requirements on the performance reserve and application of the performance framework, on thematic concentration, also in relation to the thresholds established for sustainable urban development for the ERDF, and requirements on preparation of a communication strategy for the additional resources. It is nevertheless necessary that Member States carry out at least one evaluation by 31 December 2024 to assess the effectiveness, efficiency and impact of the additional resources as well as how they contributed to achieving the goals of the new dedicated thematic objective. To facilitate the availability of comparable information at Union level, Member States are encouraged to make use of the programme-specific indicators made available by the Commission. In addition, wWhile carrying out their responsibilities linked to information, communication and visibility, Member States and managing authorities should enhance the visibility of the exceptional measures and resources introduced by the Union, in particular by ensuring that potential beneficiaries, beneficiaries, participants, final recipients of financial instruments and the general public are aware of the existence, volume and additional support stemming from the additional resources.

2020/07/20
Committee: BUDG

Clotilde ARMAND, Nicolae ŞTEFĂNUȚĂ, Martin HOJSÍK, Valérie HAYER, Olivier CHASTEL, Moritz KÖRNER

Proposal for a regulation
Recital 15

(15) With a view to allow the targeting of these additional resources to the geographic areas where they are most needed, as an exceptional measure and without prejudice to the general rules for allocating Structural Funds resources, the additional resources allocated to the ERDF and the ESF are not to be broken down per category of region. However, Member States are expected to take into account the different regional needs and development levels in order to ensure that focus is maintained on less developed regions, in accordance with the objectives of economic, social and territorial cohesion set out in Article 173 TFEU. Member States should also involve local and regional authorities, as well as relevant bodies representing civil society, in accordance with the partnership principles. In its assessment of the REACT-EU implementation, the Commission will evaluate the level of coordination between national authorities and local and regional authorities in defining the scope and the amount of assistance requested under REACT-EU.

2020/07/20
Committee: BUDG

Clotilde ARMAND, Nicolae ŞTEFĂNUȚĂ, Martin HOJSÍK