{"change_dates":[],"dossier":{"amendments":[],"changes":{"2014-11-10T02:27:22":[{"data":[{"body":"EC","commission":[{"DG":[{"title":"Employment, Social Affairs and Inclusion","url":"http://ec.europa.eu/social/"}]}],"date":"2004-07-14T00:00:00","docs":[{"celexid":"CELEX:52004PC0492:EN","text":["
PURPOSE : to\n lay down general provisions on the European Regional Development Fund, the\n European Social Fund and the Cohesion Fund.
PROPOSED\n ACT : Council Regulation.
CONTENT : this\n proposal has been drafted as part of the cohesion legislative package. The\n package consists of a Regulation for the European Social Fund (ESF) (COD/2004/0165),\n Cohesion Fund (AVC/2004/0166) and the European Regional and\n Development Fund (ERDF) (COD/2004/0167) as well as an entirely new\n proposal creating the framework for a cross-border authority to manage\n cooperation programmes (EGCC) (COD/2004/0168).
The present\n draft regulation is the proposal of the Commission for the next generation of\n cohesion policy programmes. It constitutes the basis on which, according to\n Article 55 of Council Regulation 1260/1999/EC of 21 June 1999 laying down\n general provisions on the Structural Funds, the Council shall review the mentioned\n regulation by 31 December 2006 at the latest. The Commission outlines the\n need to adopt the regulations in the course of 2005 in order to dedicate 2006 to the programming for the period 2007-2013.
It defines the\n objectives to which the Structural Funds and the Cohesion Fund are to\n contribute, the criteria for Member States and regions to be eligible under\n those Funds, the financial resources available and the criteria for their\n allocation.
The draft\n defines the context for cohesion policy, including the method for fixing the\n Community's strategic guidelines for cohesion policy, the national strategic\n reference framework and the annual examination at Community level. It also\n lays down the principles and rules on partnership, programming, evaluation,\n management, including financial management, monitoring and control on the\n basis of responsibilities shared between the Member States and the\n Commission.
As regards the\n new architecture of EU Cohesion Policy after 2006, the Commission proposes\n that actions supported by Cohesion Policy should focus on investment in a\n limited number of Community priorities, reflecting the Lisbon and Gothenburg\n agendas, where Community intervention can be expected to bring about a\n leverage effect and significant added value. Accordingly, for the operational\n programmes, the Commission proposes a core list of a limited number of key\n themes as follows: innovation and the knowledge economy, environment and risk\n prevention, accessibility and services of general economic interest.
Strategy and\n resources will be organised around three objectives:
1) Convergence\n : this objective concerns Member States and regions whose per capita GDP is\n less than 75% of the Community average. The key objective is to promote\n growth-enhancing conditions and factors leading to real convergence.\n Strategies will plan for the development of long-term competitiveness and\n employment. Today's data suggest that around 78% or EUR 264 billion will be\n concentrated on this objective;
2) Regional\n competitiveness and employment : outside the least developed Member States and regions, the Commission proposes a two-fold approach: First, regional\n development programmes will help regions to anticipate and promote economic\n change by strengthening their competitiveness and attractiveness. Second,\n interventions aim at creating more and better jobs by adapting the workforce\n to economic change. Around 17% or EUR 57.9 billion are suggested for this\n objective. Under the new regional programmes financed by the ERDF the\n Commission proposes a stricter concentration of interventions on the three\n priority themes: innovation and the knowledge economy, environment and risk\n prevention, accessibility and services of general economic interest.
As regards the\n operational programmes financed by the ESF, the Commission proposes to\n underpin the implementation of the employment recommendations and to\n strengthen social inclusion, in line with the objectives and guidelines of\n the EES.
To this end,\n support should focus on four policy priorities that are crucial for the\n implementation of the EES and where Community funding can provide added\n value: increasing the adaptability of workers and enterprises; enhancing\n access to employment and increasing participation in the labour market;\n reinforcing social inclusion and combating discrimination, mobilising reforms\n in the fields of employment and inclusion.
3) European\n territorial co-operation : Supporting co-operation of regions at\n cross-border, transnational and interregional level to further develop the\n harmonious and balanced integration of the Union's territory is at the core\n of the third objective. Around 4% or EUR 13.2 billion will be spent for this\n priority. Building on the experience of the present INTERREG Initiative, the\n Commission proposes to create a new objective dedicated to further the\n harmonious and balanced integration of the territory of the Union by\n supporting co-operation between its different components on issues of\n Community importance at cross-border, transnational and interregional level.\n Action will be financed by the ERDF and will focus on integrated programmes\n managed by a single authority in pursuit of key Community priorities linked\n to the Lisbon and Gothenburg agendas. All regions along the internal\n terrestrial and certain regions along the external terrestrial borders as\n well as along certain neighbouring maritime borders will be eligible for\n crossborder co-operation. The aim will be to promote joint solutions to\n common problems between neighbouring authorities, such as urban, rural and\n coastal development and development of economic relations and networking of\n SMEs.
For further information concerning the financial implications of\n this measure, please refer to the financial statement.
\nThe committee adopted the report drawn up by\n Konstantinos HATZIDAKIS (EPP-ED, GR) under Rule 75(3) of Parliament's Rules\n of Procedure, which allows the committee to draw up an interim report setting\n out its priorities before a final decision on assent is taken by the full\n Parliament.
The key positions in this report were:
- rejection of any significant modification to the overall\n architecture of the Commission proposals, including attempts to renationalise\n all or part of EU regional policy;
- cohesion policy should be ring-fenced from negotiations\n on the financial perspective or attempts to make drastic cuts in EU spending;
- special\n compensation mechanisms should be established for those regions or Member\n States that face substantial financial losses, due to the disparities caused\n by the implementation of the Commission proposal regarding the allocation of\n financial resources;
- MEPs were broadly opposed to any attempt to classify\n expenditure not related to investment, such as housing costs, as eligible for\n Community co-financing. However, they believed that the costs of renovating\n social housing with a view to saving energy and protecting the environment\n should be eligible;
- the committee expressed strong\n support for the Commission proposal to impose financial penalties on firms\n which have received EU funding but then decide to relocate. It advocated\n monitoring systems to quantify the economic and social costs of any\n relocation so that penalties may be set accordingly. It also called for legal\n measures to ensure that firms receiving Community funding \"do not\n relocate for a long and\n predetermined period\";
- MEPs were opposed\n to any reduction in the ceilings for state aid to convergence regions,\n including those which are victims of the \"statistical effect\" of\n enlargement;
- on the question of transparency and the fight against\n corruption, the report noted that the Commission and the
- the committee strongly supportedthe special action of EUR 1.1 billion for\n the outermost regions;
-
- the committee was opposed to the imposition of an\n arbitrary 150 km limit for defining maritime regions eligible for\n cross-border co-operation programmes.
\n
The European\n Parliament adopted a resolution drafted by Konstantinos HATZIDAKIS\n (EPP-ED, GR) by 574 votes to 45 with 44 abstentions. Parliament could only\n approve the proposal in its entirety without amendment under the assent\n procedure. In a resolution, Members nevertheless proposed a number of\n adjustments to the Commission’s text. (Please see the document dated 24/05/2005.) The Council is urged to reach a decision at the earliest opportunity on the\n 2007-2013 financial perspective, and in any event before the end of 2005, to\n give the regions enough time to prepare new operational programmes.
The key points\n in the vote are as follows: that 0.41% of Community GDP should be earmarked\n for cohesion policy; a rejection of any significant modification to the\n overall architecture of the Commission proposals, including attempts to\n renationalise all or part of EU regional policy; cohesion policy to be\n ring-fenced from negotiations on the financial perspective or attempts to\n make drastic cuts in EU spending. Specifically on financing, Parliament\n called for a political solution providing for special compensation to be\n established for those regions or Member States that face substantial\n financial losses, due to the disparities caused by the implementation of the\n Commission proposal regarding the allocation of financial resources.Parliament\n regarded the Commission's proposal to allocate EUR 336.1 billion to support\n the three priorities of the revised cohesion policy as the bare minimum\n needed to make the reform a success.
Parliament\n called for statistical effect regions to have a funding level of 85% of the\n resources provided to the full convergence regions at the beginning of\n the funding period, which will reduce to 60% by 2013;
Given the\n serious need for structural funding for many EU regions in the new\n programming period, all resources allocated to cohesion policy should be spent\n for this purpose. Parliament called, therefore, for the possibility of\n re-using unspent resources due to the N+2 rules within Sub-heading 1b for the\n regions that are in a position to absorb them on the basis of the principles\n of effectiveness and fairness.
Regarding\n funding eligibility in calculating EU co-financing, the report proposes\n eligibility for spending on the renovation of social housing with a view to\n achieving energy savings and preserving the environment.
The report\n suggests that the Commission's budget proposal for the European territorial\n cooperation objective should be maintained and that interregional cooperation\n should be an integral part of this co-operation.
Parliament considered\n that the Commission proposal to impose financial corrections on firms that\n relocate their activities is an indispensable measure, in order not to put in\n jeopardy the consolidation of economic, social and territorial cohesion in\n the affected regions. It proposed the establishment of monitoring systems in\n order to quantify the economic and social costs of any relocation so that\n appropriate penalties may be set accordingly. At the same time, it called for\n the adoption of all necessary legal measures to ensure that firms which\n receive Community funding do not relocate for a long and predetermined\n period.
On the subject\n of maritime borders, the report opposes the arbitrary 150 km maximum distance between two maritime regions for them to qualify for funding within the\n framework of trans-border cooperation proposed by the Commission and calls\n for special measures to be taken to ensure that peripheral regions can also\n participate.
The resolution\n also calls for “balanced and fair treatment” for regions suffering from\n severe natural handicaps, such as islands, mountains, border areas and\n sparsely-populated regions. The report calls for a reference to these areas\n to be included in the strategic section of the national strategic reference\n framework to be adopted by the member states, mentioning the particular needs\n of the EU's ultra-peripheral areas, Malta and Cyprus. Parliament strongly supported the special action of EUR 1 100 million for the\n outermost regions proposed by the Commission, as well as the possibility of\n financing operating aid,
Focusing on\n the urban dimension, Parliament maintained the obligation to submit\n information on how the urban question is being dealt with in terms of ERDF\n (European Regional Development Fund) programmes, including a list of chosen\n areas.
Finally,\n Parliament concluded that financing levels should be at least equivalent to\n the current level.
\nThe Council\n agreed on a general approach on a draft Council regulation laying down\n general provisions on the European regional development fund (ERDF) and the\n European social fund (ESF) and on a draft regulation on the EU's cohesion\n fund, pending the assent of the European Parliament.
It reached\n political agreement on three draft regulations of the European Parliament and\n of the Council on the ERDF, on the ESF and on the establishment of a European\n grouping of territorial cooperation.
The Council\n will formalise its agreement at a forthcoming meeting, after finalisation of\n the texts, which will be sent to the Parliament with a view to adoption under\n their respective procedures.
The Council\n decided to integrate the cohesion fund into the programming of structural assistance\n to seek greater coherence amongst the interventions of the various funds in\n order to increase the Community added value of cohesion policy. The work of\n the structural funds and the cohesion fund will be concentrated on the three\n following redefined objectives:
1)\n Convergence of the Member States and the regions\n : the key aim of the renewed cohesion policy under the\n \"convergence\" objective will be to promote growth-enhancing\n conditions and factors leading to real convergence within the Union. It covers member states and regions whose development is lagging behind; the regions\n targeted by this objective are those whose per capita gross domestic product\n (GDP) measured in purchasing power parities is less than 75% of the Community\n average. Regions suffering from the statistical effect linked to the\n reduction in the Community average following enlargement of the Union will benefit for that reason from substantial transitional aid in order to complete\n the convergence process. This aid will end in 2013 and is not due to be\n followed by a further transitional period. Member states targeted by the\n convergence objective whose per capita gross national income (GNI) is less\n than 90% of the Community average will benefit under the cohesion fund. A\n total amount of EUR 251 163 million is foreseen for this objective\n over the seven year period.
2) Regional\n competitiveness and employment : this objective\n will cover member states and regions not eligible under the “convergence”\n objective. Eligible regions are those under objective 1 for the 2000-06\n programming period that no longer satisfy the regional eligibility criteria\n of the “convergence” objective and therefore benefit from transitional aid,\n as well as all other regions of the Community. The \"regional\n competitiveness and employment\" objective will involve, through regional\n programmes financed by the European regional development fund, at helping\n regions and regional authorities to anticipate and promote economic change in\n industrial, urban and rural areas by strengthening their competitiveness and\n attractiveness, taking into account existing economic, social and territorial\n disparities. Through programmes financed by the European social fund, it is\n also aimed at helping people to anticipate and to adapt to economic change by\n supporting policies aimed at full employment, quality and productivity at\n work and social inclusion. A total amount of EUR 49 127 million is\n foreseen for this objective over seven years.
3) European\n territorial cooperation : this is a new objective\n proposed by the Commission, building on the experience of the Interreg\n initiative (interregional cooperation). It is aimed at furthering the\n balanced integration of the EU's territory by supporting cooperation between\n regions across land or sea frontiers. It will include actions to promote\n integrated territorial development and support for interregional cooperation\n and the exchange of experiences. A total amount of EUR 7 750 million\n is foreseen for this objective over seven years. The programming period for\n the structural funds and cohesion fund is of seven years as in the past.
\nPURPOSE :\n to lay down general provisions on the European Regional Development Fund, the\n European Social Fund and the Cohesion Fund (2007-1013).
PROPOSED\n ACT : Council Regulation (General regulation).
CONTENT :\n the Council agreed on a general approach on a draft Council regulation laying\n down general provisions on the European regional development fund (ERDF) and\n the European social fund (ESF) and on a draft regulation on the EU's cohesion\n fund, pending the assent of the European Parliament.
This\n Regulation defines the objectives to which the Structural Funds and the\n Cohesion Fund are to contribute, the criteria for Member States and regions to be eligible under those Funds, the financial resources available and the\n criteria for their allocation. It defines the context for cohesion policy,\n including the method for establishing the Community strategic guidelines on\n cohesion, the national strategic reference framework and the process for\n examination at Community level.
The work of\n the structural funds and the cohesion fund will be concentrated on the three\n following redefined objectives:
1)\n Convergence of the Member States and the regions\n : the key aim of the renewed cohesion policy under the\"convergence\"\n objective will be to promote growth-enhancing conditions and factors leading\n to real convergence within the Union. It covers member states and regions\n whose development is lagging behind; the regions targeted by this objective\n are those whose per capita gross domestic product (GDP) measured in\n purchasing power parities is less than 75% of the Community average. Regions\n suffering from the statistical effect linked to the reduction in the\n Community average following enlargement of the Union will benefit for that\n reason from substantial transitional aid in order to complete the convergence\n process. This aid will end in 2013 and is not due to be followed by a further\n transitional period. Member states targeted by the convergence objective\n whose per capita gross national income (GNI) is less than 90% of the\n Community average will benefit under the cohesion fund. A total amount of EUR\n 251 163 million is foreseen for this objective over the seven year\n period.
2) Regional\n competitiveness and employment : this objective\n will cover member states and regions not eligible under the “convergence”\n objective. Eligible regions are those under objective 1 for the 2000-06\n programming period that no longer satisfy the regional eligibility criteria\n of the “convergence” objective and therefore benefit from transitional aid,\n as well as all other regions of the Community. The \"regional\n competitiveness and employment\" objective will involve, through regional\n programmes financed by the European regional development fund, at helping\n regions and regional authorities to anticipate and promote economic change in\n industrial, urban and rural areas by strengthening their competitiveness and\n attractiveness, taking into account existing economic, social and territorial\n disparities. Through programmes financed by the European social fund, it is\n also aimed at helping people to anticipate and to adapt to economic change by\n supporting policies aimed at full employment, quality and productivity at\n work and social inclusion. A total amount of EUR 49 127 million is\n foreseen for this objective over seven years.
3) European\n territorial cooperation : this is a new objective\n proposed by the Commission, building on the experience of the Interreg\n initiative (interregional cooperation). It is aimed at furthering the\n balanced integration of the EU's territory by supporting cooperation between\n regions across land or sea frontiers. It will include actions to promote\n integrated territorial development and support for interregional cooperation\n and the exchange of experiences. A total amount of EUR 7 750 million\n is foreseen for this objective over seven years. The programming period for\n the structural funds and cohesion fund is of seven years as in the past.
For further information concerning the financial implications of\n this measure, please refer to the financial statement.
\nThe committee adopted the report by Konstantinos HATZIDAKIS\n (EPP-ED, GR) recommending that Parliament give its assent to the proposed\n regulation laying down general provisions on the European Regional\n Development Fund, the European Social Fund and the Cohesion Fund.
\n
The European\n Parliament adopted a report by Konstantinos HATZIDAKIS (EPP-ED, GR) by\n 533 votes in favour, 41 against and 53 abstentions and\n gave its assent to the proposal.(Please also see COD/2004/0167, COD/2004/0168 and\n AVC/2004/0166.) The package defines the objectives, the financial resources\n available and the criteria for their allocation in an enlarged EU.\n Approximately EUR 308 billion - or 35.7 per cent of the total EU budget -\n will be available to spend, as scheduled, from 1 January 2007.
\nPURPOSE: to\n lay down the general provisions governing the European Regional Development\n Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF).
LEGISLATIVE\n ACT: Regulation 1083/2006/EC of the European Parliament and of the Council on\n the European Regional Development Fund and repealing Regulation 1260/1999/EC.
CONTENT: this\n Act lays down the general rules which are to govern: i) the European Regional\n Development Fund (ERDF) ii) the European Social Fund (ESF) and iii) the\n Cohesion Fund. Together they form the tools with which the EU implements its\n Cohesion Policy and are referred to as “the Funds”. Only the ERDF and the\n ESF are defined as the “Structural Funds”; the Cohesion Fund being separate.\n The total budgetary allocation earmarked for the Funds, between 2007 and\n 2013, will be EUR 308 billion.
This general\n Regulation is supported by, and complements, four more specific Regulations\n on each of the Funds, which were approved by Council and Parliament\n simultaneously. They are:
- \n Council Regulation 1081/2006/EC on the\n European Social Fund. For a summary of its provisions see COD/2004/0165;
- \n Council Regulation 1084/2006/EC establishing\n the Cohesion Fund. For a summary of its provisions see AVC/2004/0166;
- \n Council Regulation 1080/2006/EC on the\n European Regional Development Fund. For a summary of its provisions see\n COD/2004/0167;
- \n Council Regulation 1082/2006/EC on a European\n grouping of territorial cooperation (EGTC). For a summary of its provisions\n see COD/2004/0168.
The EU’s\n Cohesion Policy is based on Treaty Article 158 which states that the\n Community must strive to strengthen the economic and social cohesion of the\n enlarged Union; the intention being to promote economic sustainable\n development across the EU’s regions and to correct current economic\n imbalances between the regions. The Funds, together with the help of the European\n Investment Bank (EIB) as well as other existing financial instruments, are\n the means with which the Community realises this objective. The Regulation’s\n provisions, indeed much of the Cohesion Policy, is defined by three\n Objectives:
Objective 1:\n Convergence:
The specific\n purpose of this objective is to speed up the economic convergence of the\n least-developed Member States and regions by improving conditions for growth\n and employment; supporting quality investment in physical and human capital;\n investing in a knowledge based society; helping societies adapt to economic\n and social changes; protecting the environment and promoting administrative\n efficiency.
Resource\n allocation: Convergence has been awarded, by far,\n the lion’s share of the total funding. The overall resources for the\n Convergence Objective will amount to 81.54% of the total or EUR 251 163 134\n 221 over a seven year period (2007-2013). Funding for the Convergence\n Objective will be sourced from the ERDF, ESF and CF. 60% of all funding under\n this objective will be earmarked for projects which prioritise both the aims\n and targets set out in the Lisbon Agenda and the “Integrated Guidelines for\n Growth and Jobs (2005-2008)”.
Eligibility: Under the Convergence Objective, those regions eligible for the\n Structural Funds (ERDF/ESF) must have NUTS level 2 status, whereby their\n gross domestic product per capita is less than 75% of the average GDP of the\n EU-25. The Member States eligible for Cohesion Funds, under the Convergence\n Objective, are defined as those whose gross national income (GNI) per capita\n is less than 90% of the average GNI of the EU-25. Following the entry into\n force of this Regulation the Commission will publish a list of all the\n regions and Member States who fulfil these specifications.
Objective\n 2: Regional competitiveness and employment:
The specific\n purpose of this objective is to: strengthen a regions’ competitiveness and\n its attractiveness to potential investors. Objective 2 funds will support\n employment opportunities bought about through social changes – such as the\n liberalisation of a trade regime. Other priorities include investing in\n quality human capital, promoting innovation alongside a knowledge-based\n society; encouraging entrepreneurship and improving the accessibility and adaptability\n of both workers and businesses.
Resource\n allocation: The overall resources allocated to\n this Objective amount to 15.95% of the total or EUR 49 127 784 318 over a\n seven year period (2007-2013). Funding for the Regional competitiveness and\n employment objective will be sourced from the ERDF and the ESF. 75% of all\n funding under this objective will be earmarked for projects which prioritise\n both the aims and targets set out in the Lisbon Agenda and the “Integrated\n Guidelines for Growth and Jobs (2005-2008)”.
Eligibility: Those eligible for the Structural Fund under this heading are\n defined as those Member States and regions not eligible under the Convergence\n objective – in other words those outside of the least developed Member States and regions.
Objective\n 3: European Territorial Co-operation:
European\n Territorial Co-operation will seek to strengthen cross-border co-operation\n through joint local and regional initiatives. Programmes supported under this\n heading will strengthen transnational co-operation through actions linked to\n Community priorities.
Resource\n allocation: The overall resources allocated to\n Objective 3 amounts to 2.52% of the total or EUR 7 750 081 461 over a seven\n year period (2007-2013). It will be funded through the ERDF. Of this amount:\n 73.86% will be devoted to financing cross-border cooperation; 20.95% will be\n earmarked for financing transnational co-operation and 5.19% will be\n earmarked for financing interregional cooperation, cooperation networks and\n the exchange of experience. The ERDF, under Objective 3 of the Cohesion\n policy, will also contribute towards the European Neighbourhood and\n Partnership Instrument as well as cross-border sea-basin programmes.
Eligibility: All regions, classified as NUTS level 3 who are situated along all\n internal and certain external land borders and all NUTS level 3 regions of\n the Community along maritime borders will be eligible for financing.\n Following the entry into force of this Regulation, the Commission will draw\n up a list of all eligible regions, which will be valid from 2007 to 2013. For\n the purpose of interregional co-operation, co-operation networks and exchange\n of experience the entire territory of the Community will be eligible for\n funding.
As well as\n establishing the general rules governing the Funds, the Regulation lays down\n the principles and rules on:
Partnership – close co-operation between the Member States and the Commission\n on the preparation, implementation and monitoring of operational programmes.
Programming – the Funds will be implemented through multi-annual programmes.\n These will be organised in several stages. “Operational programmes” will\n define the various activities being funded.
Additionally – contributions from the Structural Funds will not replace public\n or equivalent structural expenditure by a Member State.
Evaluation – these will be carried out by the Member States or the\n Commission either through internal or external experts.
Monitoring – Member States will be responsible for setting up monitoring\n committees responsible for assessing the effectiveness of the operational\n programmes. Based on reports prepared by the monitoring Committee, the\n Commission will prepare an Annual Report.
In line with\n provisions spelt out in the Regulation the Commission has prepared and proposed\n the “Community Strategic Guidelines on Cohesion Policy”. For a detailed\n summary of the Guidelines see AVC/2006/0131. These guidelines must be adopted\n by 1 February 2007. Following approval of the Guidelines the Member States\n will prepare “national strategic reference frameworks”, which identify a link\n between the Community priorities and its national reform programmes. These\n will then form the basis of the Operational Programmes, to be approved by the\n Commission in the course of 2007.
ENTRY INTO\n FORCE: 1 August 2006.
\nPURPOSE : to\n lay down general provisions on the European Regional Development Fund, the\n European Social Fund and the Cohesion Fund.
PROPOSED\n ACT : Council Regulation.
CONTENT : this\n proposal has been drafted as part of the cohesion legislative package. The\n package consists of a Regulation for the European Social Fund (ESF) (COD/2004/0165),\n Cohesion Fund (AVC/2004/0166) and the European Regional and\n Development Fund (ERDF) (COD/2004/0167) as well as an entirely new\n proposal creating the framework for a cross-border authority to manage\n cooperation programmes (EGCC) (COD/2004/0168).
The present\n draft regulation is the proposal of the Commission for the next generation of\n cohesion policy programmes. It constitutes the basis on which, according to\n Article 55 of Council Regulation 1260/1999/EC of 21 June 1999 laying down\n general provisions on the Structural Funds, the Council shall review the mentioned\n regulation by 31 December 2006 at the latest. The Commission outlines the\n need to adopt the regulations in the course of 2005 in order to dedicate 2006 to the programming for the period 2007-2013.
It defines the\n objectives to which the Structural Funds and the Cohesion Fund are to\n contribute, the criteria for Member States and regions to be eligible under\n those Funds, the financial resources available and the criteria for their\n allocation.
The draft\n defines the context for cohesion policy, including the method for fixing the\n Community's strategic guidelines for cohesion policy, the national strategic\n reference framework and the annual examination at Community level. It also\n lays down the principles and rules on partnership, programming, evaluation,\n management, including financial management, monitoring and control on the\n basis of responsibilities shared between the Member States and the\n Commission.
As regards the\n new architecture of EU Cohesion Policy after 2006, the Commission proposes\n that actions supported by Cohesion Policy should focus on investment in a\n limited number of Community priorities, reflecting the Lisbon and Gothenburg\n agendas, where Community intervention can be expected to bring about a\n leverage effect and significant added value. Accordingly, for the operational\n programmes, the Commission proposes a core list of a limited number of key\n themes as follows: innovation and the knowledge economy, environment and risk\n prevention, accessibility and services of general economic interest.
Strategy and\n resources will be organised around three objectives:
1) Convergence\n : this objective concerns Member States and regions whose per capita GDP is\n less than 75% of the Community average. The key objective is to promote\n growth-enhancing conditions and factors leading to real convergence.\n Strategies will plan for the development of long-term competitiveness and\n employment. Today's data suggest that around 78% or EUR 264 billion will be\n concentrated on this objective;
2) Regional\n competitiveness and employment : outside the least developed Member States and regions, the Commission proposes a two-fold approach: First, regional\n development programmes will help regions to anticipate and promote economic\n change by strengthening their competitiveness and attractiveness. Second,\n interventions aim at creating more and better jobs by adapting the workforce\n to economic change. Around 17% or EUR 57.9 billion are suggested for this\n objective. Under the new regional programmes financed by the ERDF the\n Commission proposes a stricter concentration of interventions on the three\n priority themes: innovation and the knowledge economy, environment and risk\n prevention, accessibility and services of general economic interest.
As regards the\n operational programmes financed by the ESF, the Commission proposes to\n underpin the implementation of the employment recommendations and to\n strengthen social inclusion, in line with the objectives and guidelines of\n the EES.
To this end,\n support should focus on four policy priorities that are crucial for the\n implementation of the EES and where Community funding can provide added\n value: increasing the adaptability of workers and enterprises; enhancing\n access to employment and increasing participation in the labour market;\n reinforcing social inclusion and combating discrimination, mobilising reforms\n in the fields of employment and inclusion.
3) European\n territorial co-operation : Supporting co-operation of regions at\n cross-border, transnational and interregional level to further develop the\n harmonious and balanced integration of the Union's territory is at the core\n of the third objective. Around 4% or EUR 13.2 billion will be spent for this\n priority. Building on the experience of the present INTERREG Initiative, the\n Commission proposes to create a new objective dedicated to further the\n harmonious and balanced integration of the territory of the Union by\n supporting co-operation between its different components on issues of\n Community importance at cross-border, transnational and interregional level.\n Action will be financed by the ERDF and will focus on integrated programmes\n managed by a single authority in pursuit of key Community priorities linked\n to the Lisbon and Gothenburg agendas. All regions along the internal\n terrestrial and certain regions along the external terrestrial borders as\n well as along certain neighbouring maritime borders will be eligible for\n crossborder co-operation. The aim will be to promote joint solutions to\n common problems between neighbouring authorities, such as urban, rural and\n coastal development and development of economic relations and networking of\n SMEs.
For further information concerning the financial implications of\n this measure, please refer to the financial statement.
\nThe committee adopted the report drawn up by\n Konstantinos HATZIDAKIS (EPP-ED, GR) under Rule 75(3) of Parliament's Rules\n of Procedure, which allows the committee to draw up an interim report setting\n out its priorities before a final decision on assent is taken by the full\n Parliament.
The key positions in this report were:
- rejection of any significant modification to the overall\n architecture of the Commission proposals, including attempts to renationalise\n all or part of EU regional policy;
- cohesion policy should be ring-fenced from negotiations\n on the financial perspective or attempts to make drastic cuts in EU spending;
- special\n compensation mechanisms should be established for those regions or Member\n States that face substantial financial losses, due to the disparities caused\n by the implementation of the Commission proposal regarding the allocation of\n financial resources;
- MEPs were broadly opposed to any attempt to classify\n expenditure not related to investment, such as housing costs, as eligible for\n Community co-financing. However, they believed that the costs of renovating\n social housing with a view to saving energy and protecting the environment\n should be eligible;
- the committee expressed strong\n support for the Commission proposal to impose financial penalties on firms\n which have received EU funding but then decide to relocate. It advocated\n monitoring systems to quantify the economic and social costs of any\n relocation so that penalties may be set accordingly. It also called for legal\n measures to ensure that firms receiving Community funding \"do not\n relocate for a long and\n predetermined period\";
- MEPs were opposed\n to any reduction in the ceilings for state aid to convergence regions,\n including those which are victims of the \"statistical effect\" of\n enlargement;
- on the question of transparency and the fight against\n corruption, the report noted that the Commission and the
- the committee strongly supportedthe special action of EUR 1.1 billion for\n the outermost regions;
-
- the committee was opposed to the imposition of an\n arbitrary 150 km limit for defining maritime regions eligible for\n cross-border co-operation programmes.
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The European\n Parliament adopted a resolution drafted by Konstantinos HATZIDAKIS\n (EPP-ED, GR) by 574 votes to 45 with 44 abstentions. Parliament could only\n approve the proposal in its entirety without amendment under the assent\n procedure. In a resolution, Members nevertheless proposed a number of\n adjustments to the Commission’s text. (Please see the document dated 24/05/2005.) The Council is urged to reach a decision at the earliest opportunity on the\n 2007-2013 financial perspective, and in any event before the end of 2005, to\n give the regions enough time to prepare new operational programmes.
The key points\n in the vote are as follows: that 0.41% of Community GDP should be earmarked\n for cohesion policy; a rejection of any significant modification to the\n overall architecture of the Commission proposals, including attempts to\n renationalise all or part of EU regional policy; cohesion policy to be\n ring-fenced from negotiations on the financial perspective or attempts to\n make drastic cuts in EU spending. Specifically on financing, Parliament\n called for a political solution providing for special compensation to be\n established for those regions or Member States that face substantial\n financial losses, due to the disparities caused by the implementation of the\n Commission proposal regarding the allocation of financial resources.Parliament\n regarded the Commission's proposal to allocate EUR 336.1 billion to support\n the three priorities of the revised cohesion policy as the bare minimum\n needed to make the reform a success.
Parliament\n called for statistical effect regions to have a funding level of 85% of the\n resources provided to the full convergence regions at the beginning of\n the funding period, which will reduce to 60% by 2013;
Given the\n serious need for structural funding for many EU regions in the new\n programming period, all resources allocated to cohesion policy should be spent\n for this purpose. Parliament called, therefore, for the possibility of\n re-using unspent resources due to the N+2 rules within Sub-heading 1b for the\n regions that are in a position to absorb them on the basis of the principles\n of effectiveness and fairness.
Regarding\n funding eligibility in calculating EU co-financing, the report proposes\n eligibility for spending on the renovation of social housing with a view to\n achieving energy savings and preserving the environment.
The report\n suggests that the Commission's budget proposal for the European territorial\n cooperation objective should be maintained and that interregional cooperation\n should be an integral part of this co-operation.
Parliament considered\n that the Commission proposal to impose financial corrections on firms that\n relocate their activities is an indispensable measure, in order not to put in\n jeopardy the consolidation of economic, social and territorial cohesion in\n the affected regions. It proposed the establishment of monitoring systems in\n order to quantify the economic and social costs of any relocation so that\n appropriate penalties may be set accordingly. At the same time, it called for\n the adoption of all necessary legal measures to ensure that firms which\n receive Community funding do not relocate for a long and predetermined\n period.
On the subject\n of maritime borders, the report opposes the arbitrary 150 km maximum distance between two maritime regions for them to qualify for funding within the\n framework of trans-border cooperation proposed by the Commission and calls\n for special measures to be taken to ensure that peripheral regions can also\n participate.
The resolution\n also calls for “balanced and fair treatment” for regions suffering from\n severe natural handicaps, such as islands, mountains, border areas and\n sparsely-populated regions. The report calls for a reference to these areas\n to be included in the strategic section of the national strategic reference\n framework to be adopted by the member states, mentioning the particular needs\n of the EU's ultra-peripheral areas, Malta and Cyprus. Parliament strongly supported the special action of EUR 1 100 million for the\n outermost regions proposed by the Commission, as well as the possibility of\n financing operating aid,
Focusing on\n the urban dimension, Parliament maintained the obligation to submit\n information on how the urban question is being dealt with in terms of ERDF\n (European Regional Development Fund) programmes, including a list of chosen\n areas.
Finally,\n Parliament concluded that financing levels should be at least equivalent to\n the current level.
\nThe Council\n agreed on a general approach on a draft Council regulation laying down\n general provisions on the European regional development fund (ERDF) and the\n European social fund (ESF) and on a draft regulation on the EU's cohesion\n fund, pending the assent of the European Parliament.
It reached\n political agreement on three draft regulations of the European Parliament and\n of the Council on the ERDF, on the ESF and on the establishment of a European\n grouping of territorial cooperation.
The Council\n will formalise its agreement at a forthcoming meeting, after finalisation of\n the texts, which will be sent to the Parliament with a view to adoption under\n their respective procedures.
The Council\n decided to integrate the cohesion fund into the programming of structural assistance\n to seek greater coherence amongst the interventions of the various funds in\n order to increase the Community added value of cohesion policy. The work of\n the structural funds and the cohesion fund will be concentrated on the three\n following redefined objectives:
1)\n Convergence of the Member States and the regions\n : the key aim of the renewed cohesion policy under the\n \"convergence\" objective will be to promote growth-enhancing\n conditions and factors leading to real convergence within the Union. It covers member states and regions whose development is lagging behind; the regions\n targeted by this objective are those whose per capita gross domestic product\n (GDP) measured in purchasing power parities is less than 75% of the Community\n average. Regions suffering from the statistical effect linked to the\n reduction in the Community average following enlargement of the Union will benefit for that reason from substantial transitional aid in order to complete\n the convergence process. This aid will end in 2013 and is not due to be\n followed by a further transitional period. Member states targeted by the\n convergence objective whose per capita gross national income (GNI) is less\n than 90% of the Community average will benefit under the cohesion fund. A\n total amount of EUR 251 163 million is foreseen for this objective\n over the seven year period.
2) Regional\n competitiveness and employment : this objective\n will cover member states and regions not eligible under the “convergence”\n objective. Eligible regions are those under objective 1 for the 2000-06\n programming period that no longer satisfy the regional eligibility criteria\n of the “convergence” objective and therefore benefit from transitional aid,\n as well as all other regions of the Community. The \"regional\n competitiveness and employment\" objective will involve, through regional\n programmes financed by the European regional development fund, at helping\n regions and regional authorities to anticipate and promote economic change in\n industrial, urban and rural areas by strengthening their competitiveness and\n attractiveness, taking into account existing economic, social and territorial\n disparities. Through programmes financed by the European social fund, it is\n also aimed at helping people to anticipate and to adapt to economic change by\n supporting policies aimed at full employment, quality and productivity at\n work and social inclusion. A total amount of EUR 49 127 million is\n foreseen for this objective over seven years.
3) European\n territorial cooperation : this is a new objective\n proposed by the Commission, building on the experience of the Interreg\n initiative (interregional cooperation). It is aimed at furthering the\n balanced integration of the EU's territory by supporting cooperation between\n regions across land or sea frontiers. It will include actions to promote\n integrated territorial development and support for interregional cooperation\n and the exchange of experiences. A total amount of EUR 7 750 million\n is foreseen for this objective over seven years. The programming period for\n the structural funds and cohesion fund is of seven years as in the past.
\nPURPOSE :\n to lay down general provisions on the European Regional Development Fund, the\n European Social Fund and the Cohesion Fund (2007-1013).
PROPOSED\n ACT : Council Regulation (General regulation).
CONTENT :\n the Council agreed on a general approach on a draft Council regulation laying\n down general provisions on the European regional development fund (ERDF) and\n the European social fund (ESF) and on a draft regulation on the EU's cohesion\n fund, pending the assent of the European Parliament.
This\n Regulation defines the objectives to which the Structural Funds and the\n Cohesion Fund are to contribute, the criteria for Member States and regions to be eligible under those Funds, the financial resources available and the\n criteria for their allocation. It defines the context for cohesion policy,\n including the method for establishing the Community strategic guidelines on\n cohesion, the national strategic reference framework and the process for\n examination at Community level.
The work of\n the structural funds and the cohesion fund will be concentrated on the three\n following redefined objectives:
1)\n Convergence of the Member States and the regions\n : the key aim of the renewed cohesion policy under the\"convergence\"\n objective will be to promote growth-enhancing conditions and factors leading\n to real convergence within the Union. It covers member states and regions\n whose development is lagging behind; the regions targeted by this objective\n are those whose per capita gross domestic product (GDP) measured in\n purchasing power parities is less than 75% of the Community average. Regions\n suffering from the statistical effect linked to the reduction in the\n Community average following enlargement of the Union will benefit for that\n reason from substantial transitional aid in order to complete the convergence\n process. This aid will end in 2013 and is not due to be followed by a further\n transitional period. Member states targeted by the convergence objective\n whose per capita gross national income (GNI) is less than 90% of the\n Community average will benefit under the cohesion fund. A total amount of EUR\n 251 163 million is foreseen for this objective over the seven year\n period.
2) Regional\n competitiveness and employment : this objective\n will cover member states and regions not eligible under the “convergence”\n objective. Eligible regions are those under objective 1 for the 2000-06\n programming period that no longer satisfy the regional eligibility criteria\n of the “convergence” objective and therefore benefit from transitional aid,\n as well as all other regions of the Community. The \"regional\n competitiveness and employment\" objective will involve, through regional\n programmes financed by the European regional development fund, at helping\n regions and regional authorities to anticipate and promote economic change in\n industrial, urban and rural areas by strengthening their competitiveness and\n attractiveness, taking into account existing economic, social and territorial\n disparities. Through programmes financed by the European social fund, it is\n also aimed at helping people to anticipate and to adapt to economic change by\n supporting policies aimed at full employment, quality and productivity at\n work and social inclusion. A total amount of EUR 49 127 million is\n foreseen for this objective over seven years.
3) European\n territorial cooperation : this is a new objective\n proposed by the Commission, building on the experience of the Interreg\n initiative (interregional cooperation). It is aimed at furthering the\n balanced integration of the EU's territory by supporting cooperation between\n regions across land or sea frontiers. It will include actions to promote\n integrated territorial development and support for interregional cooperation\n and the exchange of experiences. A total amount of EUR 7 750 million\n is foreseen for this objective over seven years. The programming period for\n the structural funds and cohesion fund is of seven years as in the past.
For further information concerning the financial implications of\n this measure, please refer to the financial statement.
\nThe committee adopted the report by Konstantinos HATZIDAKIS\n (EPP-ED, GR) recommending that Parliament give its assent to the proposed\n regulation laying down general provisions on the European Regional\n Development Fund, the European Social Fund and the Cohesion Fund.
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The European\n Parliament adopted a report by Konstantinos HATZIDAKIS (EPP-ED, GR) by\n 533 votes in favour, 41 against and 53 abstentions and\n gave its assent to the proposal.(Please also see COD/2004/0167, COD/2004/0168 and\n AVC/2004/0166.) The package defines the objectives, the financial resources\n available and the criteria for their allocation in an enlarged EU.\n Approximately EUR 308 billion - or 35.7 per cent of the total EU budget -\n will be available to spend, as scheduled, from 1 January 2007.
\nPURPOSE: to\n lay down the general provisions governing the European Regional Development\n Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF).
LEGISLATIVE\n ACT: Regulation 1083/2006/EC of the European Parliament and of the Council on\n the European Regional Development Fund and repealing Regulation 1260/1999/EC.
CONTENT: this\n Act lays down the general rules which are to govern: i) the European Regional\n Development Fund (ERDF) ii) the European Social Fund (ESF) and iii) the\n Cohesion Fund. Together they form the tools with which the EU implements its\n Cohesion Policy and are referred to as “the Funds”. Only the ERDF and the\n ESF are defined as the “Structural Funds”; the Cohesion Fund being separate.\n The total budgetary allocation earmarked for the Funds, between 2007 and\n 2013, will be EUR 308 billion.
This general\n Regulation is supported by, and complements, four more specific Regulations\n on each of the Funds, which were approved by Council and Parliament\n simultaneously. They are:
- \n Council Regulation 1081/2006/EC on the\n European Social Fund. For a summary of its provisions see COD/2004/0165;
- \n Council Regulation 1084/2006/EC establishing\n the Cohesion Fund. For a summary of its provisions see AVC/2004/0166;
- \n Council Regulation 1080/2006/EC on the\n European Regional Development Fund. For a summary of its provisions see\n COD/2004/0167;
- \n Council Regulation 1082/2006/EC on a European\n grouping of territorial cooperation (EGTC). For a summary of its provisions\n see COD/2004/0168.
The EU’s\n Cohesion Policy is based on Treaty Article 158 which states that the\n Community must strive to strengthen the economic and social cohesion of the\n enlarged Union; the intention being to promote economic sustainable\n development across the EU’s regions and to correct current economic\n imbalances between the regions. The Funds, together with the help of the European\n Investment Bank (EIB) as well as other existing financial instruments, are\n the means with which the Community realises this objective. The Regulation’s\n provisions, indeed much of the Cohesion Policy, is defined by three\n Objectives:
Objective 1:\n Convergence:
The specific\n purpose of this objective is to speed up the economic convergence of the\n least-developed Member States and regions by improving conditions for growth\n and employment; supporting quality investment in physical and human capital;\n investing in a knowledge based society; helping societies adapt to economic\n and social changes; protecting the environment and promoting administrative\n efficiency.
Resource\n allocation: Convergence has been awarded, by far,\n the lion’s share of the total funding. The overall resources for the\n Convergence Objective will amount to 81.54% of the total or EUR 251 163 134\n 221 over a seven year period (2007-2013). Funding for the Convergence\n Objective will be sourced from the ERDF, ESF and CF. 60% of all funding under\n this objective will be earmarked for projects which prioritise both the aims\n and targets set out in the Lisbon Agenda and the “Integrated Guidelines for\n Growth and Jobs (2005-2008)”.
Eligibility: Under the Convergence Objective, those regions eligible for the\n Structural Funds (ERDF/ESF) must have NUTS level 2 status, whereby their\n gross domestic product per capita is less than 75% of the average GDP of the\n EU-25. The Member States eligible for Cohesion Funds, under the Convergence\n Objective, are defined as those whose gross national income (GNI) per capita\n is less than 90% of the average GNI of the EU-25. Following the entry into\n force of this Regulation the Commission will publish a list of all the\n regions and Member States who fulfil these specifications.
Objective\n 2: Regional competitiveness and employment:
The specific\n purpose of this objective is to: strengthen a regions’ competitiveness and\n its attractiveness to potential investors. Objective 2 funds will support\n employment opportunities bought about through social changes – such as the\n liberalisation of a trade regime. Other priorities include investing in\n quality human capital, promoting innovation alongside a knowledge-based\n society; encouraging entrepreneurship and improving the accessibility and adaptability\n of both workers and businesses.
Resource\n allocation: The overall resources allocated to\n this Objective amount to 15.95% of the total or EUR 49 127 784 318 over a\n seven year period (2007-2013). Funding for the Regional competitiveness and\n employment objective will be sourced from the ERDF and the ESF. 75% of all\n funding under this objective will be earmarked for projects which prioritise\n both the aims and targets set out in the Lisbon Agenda and the “Integrated\n Guidelines for Growth and Jobs (2005-2008)”.
Eligibility: Those eligible for the Structural Fund under this heading are\n defined as those Member States and regions not eligible under the Convergence\n objective – in other words those outside of the least developed Member States and regions.
Objective\n 3: European Territorial Co-operation:
European\n Territorial Co-operation will seek to strengthen cross-border co-operation\n through joint local and regional initiatives. Programmes supported under this\n heading will strengthen transnational co-operation through actions linked to\n Community priorities.
Resource\n allocation: The overall resources allocated to\n Objective 3 amounts to 2.52% of the total or EUR 7 750 081 461 over a seven\n year period (2007-2013). It will be funded through the ERDF. Of this amount:\n 73.86% will be devoted to financing cross-border cooperation; 20.95% will be\n earmarked for financing transnational co-operation and 5.19% will be\n earmarked for financing interregional cooperation, cooperation networks and\n the exchange of experience. The ERDF, under Objective 3 of the Cohesion\n policy, will also contribute towards the European Neighbourhood and\n Partnership Instrument as well as cross-border sea-basin programmes.
Eligibility: All regions, classified as NUTS level 3 who are situated along all\n internal and certain external land borders and all NUTS level 3 regions of\n the Community along maritime borders will be eligible for financing.\n Following the entry into force of this Regulation, the Commission will draw\n up a list of all eligible regions, which will be valid from 2007 to 2013. For\n the purpose of interregional co-operation, co-operation networks and exchange\n of experience the entire territory of the Community will be eligible for\n funding.
As well as\n establishing the general rules governing the Funds, the Regulation lays down\n the principles and rules on:
Partnership – close co-operation between the Member States and the Commission\n on the preparation, implementation and monitoring of operational programmes.
Programming – the Funds will be implemented through multi-annual programmes.\n These will be organised in several stages. “Operational programmes” will\n define the various activities being funded.
Additionally – contributions from the Structural Funds will not replace public\n or equivalent structural expenditure by a Member State.
Evaluation – these will be carried out by the Member States or the\n Commission either through internal or external experts.
Monitoring – Member States will be responsible for setting up monitoring\n committees responsible for assessing the effectiveness of the operational\n programmes. Based on reports prepared by the monitoring Committee, the\n Commission will prepare an Annual Report.
In line with\n provisions spelt out in the Regulation the Commission has prepared and proposed\n the “Community Strategic Guidelines on Cohesion Policy”. For a detailed\n summary of the Guidelines see AVC/2006/0131. These guidelines must be adopted\n by 1 February 2007. Following approval of the Guidelines the Member States\n will prepare “national strategic reference frameworks”, which identify a link\n between the Community priorities and its national reform programmes. These\n will then form the basis of the Operational Programmes, to be approved by the\n Commission in the course of 2007.
ENTRY INTO\n FORCE: 1 August 2006.
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