BETA


2015/2052(INI) European Structural and Investment Funds and sound economic governance: guidelines for the implementation of Article 23 of the Common Provisions Regulation

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead REGI BLANCO LÓPEZ José (icon: S&D S&D) POLČÁK Stanislav (icon: PPE PPE), TOMAŠIĆ Ruža (icon: ECR ECR), JAKOVČIĆ Ivan (icon: ALDE ALDE), ANDERSON Martina (icon: GUE/NGL GUE/NGL), ROPĖ Bronis (icon: Verts/ALE Verts/ALE), D'AMATO Rosa (icon: EFDD EFDD)
Committee Opinion BUDG LEWANDOWSKI Janusz (icon: PPE PPE)
Committee Opinion ECON
Committee Opinion EMPL LÓPEZ Javi (icon: S&D S&D) Laura AGEA (icon: EFDD EFDD), Enrique CALVET CHAMBON (icon: ALDE ALDE), Csaba SÓGOR (icon: PPE PPE)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2016/03/15
   EC - Commission response to text adopted in plenary
Documents
2015/10/28
   EP - Results of vote in Parliament
2015/10/28
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 482 votes to 100 with 51 abstentions, a resolution on the European Structural and Investment Funds and sound economic governance: in response to the Commission communication on the guidelines on the application of the measures linking effectiveness of the European Structural and Investment Funds to sound economic governance according to Article 23 of Regulation (EU) 1303/2013 on the common provisions (the CPR).

A proposal for a replacement resolution, tabled by the GUE/NGL group, was rejected in plenary by 54 votes to 521 with 89 abstentions.

Linking effectiveness of the ESI Funds to sound economic governance : it was recalled that the Guidelines concern the first strand of measures linking the effectiveness of the ESI Funds to sound economic governance under Article 23 CPR. This relates to a reprogramming and a suspension of payments which are not compulsory, unlike the second strand of Article 23 CPR, which requires the suspension of commitments or payments where Member States fail to take corrective action in the context of the economic governance process.

Parliament believed that the achievement of the ESI Funds’ policy objectives and goals should not be hindered by the economic governance mechanisms, while acknowledging their relevance in contributing to a stable macroeconomic environment and an efficient, effective and result-oriented cohesion policy. It considered that Article 23 of the CPR must only be used as a last resort to contribute to an efficient implementation of the ESI Funds.

The Commission was asked to:

submit a white paper taking account of the effects of public investment in the long term and establishing a typology of quality investments, so that those which produce best effects in the long term can be clearly identified; provide further analytical data on the impact and significance of the macroeconomic mechanisms for regional development, for the effectiveness of cohesion policy and for the interaction between the European economic governance framework and cohesion policy.

Members States, for their part, were asked to make best use of the flexibility existing under the rules of the Stability and Growth Pact.

Reprogramming under Article 23 CPR : Members made the following observations:

any decision regarding reprogramming or suspension under Article 23 CPR must only be used in exceptional situations , and must be well-weighed, thoroughly justified and implemented in a cautious fashion, with indication of the programmes or priorities concerned in order to ensure transparency and allow for verification and review; frequent reprogramming would be counter-productive and should be avoided in order not to disrupt fund management or undermine the stability and predictability of the multiannual investment strategy and to prevent any negative impacts.

Members welcomed the cautious approach of the Commission with regard to reprogramming and its intention to keep it to the minimum necessary. It called for an ‘early warning’ approach in order to inform Member States concerned of the launching of the reprogramming procedure under Article 23 CPR, and emphasised that any reprogramming request should be preceded by consultation of the monitoring committee.

The Commission is asked to:

carry out, in close cooperation with the Member State concerned, a comprehensive analysis of all available options other than the application of Article 23 CPR to address issues that may trigger a reprogramming request; evaluate the impact and cost-efficiency at regional and local levels of any measures adopted under Article 23 CPR; read Article 23 CPR in line with the principle of proportionality, by taking into account the situation of those Member States and regions which face socio-economic difficulties.

Members recalled that strong institutional coordination is essential for ensuring the right policy complementarities and synergies. They considered it essential to ensure transparency and accountability by giving Parliament democratic oversight of the system of governance in the context of Article 23 CPR.

Suspension of payments : Parliament emphasised the penalising nature of any suspension of payments, and asked the Commission to use its discretionary power to propose the suspension of payments with utmost caution , after due consideration of all relevant information and elements arising from and opinions expressed through the structured dialogue.

Role of the European Parliament : Members regretted that the Guidelines do not make any reference to the role of Parliament, despite the fact that the CPR was adopted under the ordinary legislative procedure. They considered that the involvement of Parliament should be formalised by way of a clear procedure allowing Parliament to be consulted at all stages as regards the adoption of reprogramming requests or of any proposals and decisions on suspension of commitments or payments.

They set out the steps that were needed for a procedure for constant, clear and transparent collaboration at interinstitutional level.

Documents
2015/10/28
   EP - End of procedure in Parliament
2015/10/27
   EP - Debate in Parliament
2015/09/29
   EP - Committee report tabled for plenary, single reading
Details

The Committee on Regional Development adopted an own-initiative report by José BLANCO LÓPEZ (S&D, ES) on the European Structural and Investment Funds and sound economic governance: in response to the Commission communication on the guidelines on the application of the measures linking effectiveness of the European Structural and Investment Funds to sound economic governance according to Article 23 of Regulation (EU) 1303/2013 on the common provisions (the CPR).

The Guidelines concern the first strand of measures linking the effectiveness of the ESI Funds to sound economic governance under Article 23 CPR. This relates to a reprogramming and a suspension of payments which are not compulsory, unlike the second strand of Article 23 CPR, which requires the suspension of commitments or payments where Member States fail to take corrective action in the context of the economic governance process.

Members believe that the achievement of the ESI Funds’ policy objectives and goals should not be hindered by the economic governance mechanisms, while acknowledging their relevance in contributing to a stable macroeconomic environment and an efficient, effective and result-oriented cohesion policy. They considered that Article 23 of the CPR must only be used as a last resort to contribute to an efficient implementation of the ESI Funds.

Reprogramming under Article 23 CPR : Members made the following observations:

any decision regarding reprogramming or suspension under Article 23 CPR must only be used in exceptional situations , and must be well-weighed, thoroughly justified and implemented in a cautious fashion, with indication of the programmes or priorities concerned in order to ensure transparency and allow for verification and review; frequent reprogramming would be counter-productive and should be avoided in order not to disrupt fund management or undermine the stability and predictability of the multiannual investment strategy and to prevent any negative impacts.

The report welcomed the cautious approach of the Commission with regard to reprogramming and its intention to keep it to the minimum necessary. It called for an ‘ early warning’ approach in order to inform Member States concerned of the launching of the reprogramming procedure under Article 23 CPR, and emphasised that any reprogramming request should be preceded by consultation of the monitoring committee.

The Commission is asked to:

carry out, in close cooperation with the Member State concerned, a comprehensive analysis of all available options other than the application of Article 23 CPR to address issues that may trigger a reprogramming request; evaluate the impact and cost-efficiency at regional and local levels of any measures adopted under Article 23 CPR; read Article 23 CPR in line with the principle of proportionality , by taking into account the situation of those Member States and regions which face socio-economic difficulties.

Members recalled that strong institutional coordination is essential for ensuring the right policy complementarities and synergies. They considered it essential to ensure transparency and accountability by giving Parliament democratic oversight of the system of governance in the context of Article 23 CPR.

Suspension of payments : the report emphasised the penalising nature of any suspension of payments, and asked the Commission to use its discretionary power to propose the suspension of payments with utmost caution , after due consideration of all relevant information and elements arising from and opinions expressed through the structured dialogue.

Role of the European Parliament : Members regretted that the Guidelines do not make any reference to the role of Parliament, despite the fact that the CPR was adopted under the ordinary legislative procedure. They considered that the involvement of Parliament should be formalised by way of a clear procedure allowing Parliament to be consulted at all stages as regards the adoption of reprogramming requests or of any proposals and decisions on suspension of commitments or payments.

Documents
2015/09/17
   EP - Vote in committee, 1st reading/single reading
2015/06/24
   EP - Committee opinion
Documents
2015/06/24
   EP - Committee opinion
Documents
2015/05/22
   EP - Amendments tabled in committee
Documents
2015/04/21
   EP - Committee draft report
Documents
2015/04/17
   EP - LEWANDOWSKI Janusz (PPE) appointed as rapporteur in BUDG
2015/03/12
   EP - Committee referral announced in Parliament, 1st reading/single reading
2015/03/10
   EP - LÓPEZ Javi (S&D) appointed as rapporteur in EMPL
2015/02/04
   IT_SENATE - Contribution
Documents
2014/09/22
   EP - BLANCO LÓPEZ José (S&D) appointed as rapporteur in REGI
2014/07/30
   EC - For information
Details

PURPOSE: to provide guidelines on the application of the measures linking effectiveness of the European Structural and Investment Funds to sound economic governance.

BACKGROUND: in the period 2014-2020, support from the European Structural and Investment Funds (ESI funds) is closely linked to the respect of EU economic governance .

Regulation (EU) No 1303/2013 , the Common Provisions Regulation (CPR) on the five ESI funds, lays down the provisions linking the effectiveness of the funds to sound economic governance. This conditionality applies through two distinct mechanisms:

a first strand , whereby the Commission may request a Member State to reprogramme part of its funding when this is justified by the economic and employment challenges identified under various economic governance procedures; and a second strand , whereby the Commission is obliged to propose a suspension of ESI funding when certain stages in the various economic governance procedures are reached.

In 2014, Member States are negotiating their Partnership Agreements and programmes with the Commission. These will determine the multiannual strategy for implementing the Member State’s allocation from the five ESI Funds over the seven years of the programming period (2014-20). The Commission expects to approve Partnership Agreements and most programmes in the course of 2014.

Reprogramming under the Common Provisions Regulation is only possible as of 2015 and until 2019 . This should only be used in cases where it could have a higher impact than the existing allocation of the funds in the implementation of the relevant CSRs, relevant Council recommendations or in the economic adjustment programmes.

CONTENT: this Communication follows up on the commitment given by the Commission to issue, not later than 6 months from the entry into force of the Common Provisions Regulation, guidelines in the form of a Communication of the Commission explaining how it envisages that the provisions on measures linking effectiveness of ESI Funds to sound economic governance will be applied.

These guidelines may be summarised as follows:

Review and types of amendments to Partnership Agreements and programmes :

in cases where a reprogramming request is triggered in the context of the European Semester, it will be as soon as possible after the adoption of the relevant CSRs by the Council and, in any case, no later than four months after the Council’s adoption. This will be compatible with the indicated reprogramming deadlines and avoid interference with the subsequent round of CSRs. In case of reprogramming requests to address Council recommendations in the context of excessive macroeconomic imbalances, the Commission will consider similar deadlines; the Commission will duly justify any reprogramming request and provide sufficient details regarding the programmes and priorities to be reinforced or downsized according to the specific case, including an indication of the expected financial implications; in any reprogramming request, the Commission will ask a Member State to review its Partnership Agreement and programmes . This will serve to respond adequately to the economic and employment challenges identified in the relevant CSR, relevant Council recommendation, or memorandum of understanding (in the case of Member States under financial assistance); the first, clear-cut case of failing to take effective action is when a Member State simply fails to submit — within the deadlines provided for by the Regulation — either a preliminary response or a proposal for amendment of its Partnership Agreement and the programmes concerned; the action undertaken by the Member State will be assessed on the basis of objective criteria . In case of failure to take effective action, the Commission will explain in detail why amendments proposed by the Member State are considered to be insufficient.

Suspension of payments : if the Member State fails to take effective action within the deadlines set by the Common Provisions Regulation (CPR), the Commission can make a proposal to the Council to suspend part or all of the payments for the programmes or priorities concerned. The Commission may propose to the Council a suspension:

the Commission would consider proposing suspension in the case of ‘no action’ , i.e. if the Member State fails to provide any preliminary response to the Commission request or any proposal to amend its Partnership Agreement and programmes within the deadlines provided for by the Regulation; the suspension will be set at the amount necessary to provide the right incentives to the Member State to comply with the Commission request; any suspension will take account of mitigating factors: (i) the size of the suspension as a share of national GDP to ensure equality of treatment across Member States; (ii) the economic and social circumstances of Member States, taking into consideration exceptional circumstances ; the Commission will not propose any suspension of those programmes or priorities that are to be increased as a result of a reprogramming or considered to be of critical importance.

2014/07/30
   EC - Non-legislative basic document published

Documents

Activities

Votes

A8-0268/2015 - José Blanco López - Am 2

2015/10/28 Outcome: -: 521, 0: 89, +: 54
CY IE LU EE EL LV MT LT SI DK HR BG FI AT SK SE HU PT CZ NL BE ES RO FR IT PL DE GB
Total
5
10
5
5
18
7
6
9
8
11
9
11
13
18
11
18
19
21
15
22
21
47
23
66
70
46
83
66
icon: GUE/NGL GUE/NGL
45

Cyprus GUE/NGL

2

Denmark GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

Netherlands GUE/NGL

For (1)

3

United Kingdom GUE/NGL

1
icon: Verts/ALE Verts/ALE
45

Luxembourg Verts/ALE

Abstain (1)

1

Estonia Verts/ALE

Abstain (1)

1

Latvia Verts/ALE

Abstain (1)

1

Lithuania Verts/ALE

Abstain (1)

1

Slovenia Verts/ALE

Abstain (1)

1

Denmark Verts/ALE

Abstain (1)

1

Croatia Verts/ALE

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1

Finland Verts/ALE

Abstain (1)

1

Austria Verts/ALE

3
4

Hungary Verts/ALE

Abstain (1)

1

Netherlands Verts/ALE

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1

Belgium Verts/ALE

2

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6
icon: NI NI
12

France NI

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1

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1

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1

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1
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3

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193

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A8-0268/2015 - José Blanco López - § 2/1

2015/10/28 Outcome: +: 586, -: 40, 0: 26
DE IT ES FR PL GB RO PT BE HU EL CZ SE FI BG SK NL IE AT DK LT HR SI LV MT LU EE CY
Total
83
68
45
60
46
66
24
20
20
18
18
15
17
13
11
11
24
10
18
11
9
8
8
7
6
5
5
5
icon: PPE PPE
186

Denmark PPE

For (1)

1

Lithuania PPE

1

Luxembourg PPE

2

Estonia PPE

For (1)

1
icon: S&D S&D
167

Czechia S&D

3

Slovakia S&D

2

Netherlands S&D

2

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1

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1

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1

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1

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3

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45

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A8-0268/2015 - José Blanco López - § 2/2

2015/10/28 Outcome: +: 475, -: 165, 0: 8
DE PL IT RO ES GB CZ BE PT BG SK FI HU NL LT SE HR DK SI MT LV FR LU EE AT IE CY EL
Total
83
46
69
23
47
66
13
18
20
11
10
13
17
24
9
18
8
11
8
6
7
63
4
4
17
10
5
17
icon: PPE PPE
185

Lithuania PPE

1

Denmark PPE

For (1)

1

Luxembourg PPE

2

Estonia PPE

For (1)

1
icon: S&D S&D
164

Czechia S&D

3

Belgium S&D

3

Bulgaria S&D

Abstain (1)

4

Slovakia S&D

2

Netherlands S&D

2

Croatia S&D

For (1)

1

Slovenia S&D

For (1)

1

Malta S&D

3

Latvia S&D

1

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1

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61

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2

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1

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2

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2

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icon: NI NI
12

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1

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1

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1
3

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1
icon: ENF ENF
36

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2

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1

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1

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4
icon: EFDD EFDD
39

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1

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2

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icon: GUE/NGL GUE/NGL
45

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3

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1
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2
icon: Verts/ALE Verts/ALE
44

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6

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2

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1

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1

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2

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1
4

Croatia Verts/ALE

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1

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1

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1

Latvia Verts/ALE

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1

Austria Verts/ALE

3

A8-0268/2015 - José Blanco López - § 4/1

2015/10/28 Outcome: +: 632, -: 26, 0: 7
DE IT FR ES PL GB RO PT BE HU AT SE EL CZ NL FI BG SK IE DK LT HR SI LV EE MT LU CY
Total
83
70
66
47
46
65
24
21
19
19
18
18
18
15
24
13
11
11
10
11
9
9
8
7
6
6
5
5
icon: PPE PPE
193

Denmark PPE

For (1)

1

Lithuania PPE

1

Estonia PPE

For (1)

1

Luxembourg PPE

2
icon: S&D S&D
168

Czechia S&D

3

Netherlands S&D

2

Slovakia S&D

2

Ireland S&D

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1

Croatia S&D

For (1)

1

Slovenia S&D

For (1)

1

Latvia S&D

1

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For (1)

1

Malta S&D

3

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1

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1
icon: ECR ECR
64

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2

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1

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2
2

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1

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icon: ALDE ALDE
62

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icon: Verts/ALE Verts/ALE
45

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2

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icon: ENF ENF
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icon: NI NI
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For (1)

1

A8-0268/2015 - José Blanco López - § 4/2

2015/10/28 Outcome: +: 473, -: 164, 0: 9
DE PL IT RO ES GB CZ BE PT BG SK HU FI LT NL DK SI MT FR SE LV HR EE AT LU IE CY EL
Total
81
45
68
24
46
65
14
19
21
11
11
18
13
9
22
11
8
6
63
17
7
7
6
17
5
9
5
17
icon: PPE PPE
180

Lithuania PPE

1

Denmark PPE

For (1)

1

Estonia PPE

For (1)

1

Luxembourg PPE

2
3
icon: S&D S&D
168

Czechia S&D

3

Slovakia S&D

2

Netherlands S&D

2

Slovenia S&D

For (1)

1

Malta S&D

3

Latvia S&D

1

Croatia S&D

For (1)

1

Estonia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Ireland S&D

For (1)

1

Cyprus S&D

Against (1)

1
icon: ALDE ALDE
59

Romania ALDE

2

United Kingdom ALDE

1

Bulgaria ALDE

3

Denmark ALDE

3

Slovenia ALDE

For (1)

1

Latvia ALDE

1

Croatia ALDE

2

Estonia ALDE

3

Luxembourg ALDE

For (1)

1

Ireland ALDE

For (1)

1
icon: ECR ECR
63

Italy ECR

2

Romania ECR

For (1)

1

Czechia ECR

1
2

Lithuania ECR

1

Netherlands ECR

2

Denmark ECR

2

Latvia ECR

For (1)

1

Greece ECR

Against (1)

1
icon: NI NI
10

Germany NI

Abstain (1)

1

Poland NI

Against (1)

1
3
icon: ENF ENF
35

Poland ENF

2

United Kingdom ENF

Against (1)

1

Belgium ENF

Against (1)

1

Netherlands ENF

3

Austria ENF

Abstain (1)

4
icon: EFDD EFDD
39

Poland EFDD

1

Lithuania EFDD

For (1)

1

France EFDD

Against (1)

1

Sweden EFDD

2
icon: GUE/NGL GUE/NGL
45

Italy GUE/NGL

3

United Kingdom GUE/NGL

Against (1)

1

Finland GUE/NGL

Against (1)

1

Netherlands GUE/NGL

3

Denmark GUE/NGL

Against (1)

1
3

Sweden GUE/NGL

Against (1)

1
4

Cyprus GUE/NGL

2
icon: Verts/ALE Verts/ALE
46

United Kingdom Verts/ALE

6

Belgium Verts/ALE

2

Hungary Verts/ALE

Against (1)

1

Finland Verts/ALE

Against (1)

1

Lithuania Verts/ALE

Against (1)

1

Netherlands Verts/ALE

2

Denmark Verts/ALE

Against (1)

1

Slovenia Verts/ALE

Against (1)

1
4

Latvia Verts/ALE

Against (1)

1

Croatia Verts/ALE

Against (1)

1

Estonia Verts/ALE

Against (1)

1

Austria Verts/ALE

3

Luxembourg Verts/ALE

Against (1)

1

A8-0268/2015 - José Blanco López - Am 1

2015/10/28 Outcome: -: 405, +: 176, 0: 77
IT FR EL IE CY MT LU ES SI LV EE PT LT FI HR SE DK BE BG SK HU AT NL CZ RO PL DE GB
Total
69
66
16
10
5
5
5
46
8
7
5
20
9
13
9
18
11
20
11
11
19
18
24
15
24
46
81
66
icon: GUE/NGL GUE/NGL
44

Cyprus GUE/NGL

2

Finland GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Netherlands GUE/NGL

3

United Kingdom GUE/NGL

1
icon: ENF ENF
37

Belgium ENF

Against (1)

1

Netherlands ENF

4

Poland ENF

2

United Kingdom ENF

Against (1)

1
icon: Verts/ALE Verts/ALE
46

France Verts/ALE

6

Luxembourg Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Latvia Verts/ALE

Abstain (1)

1

Estonia Verts/ALE

Abstain (1)

1

Lithuania Verts/ALE

Abstain (1)

1

Finland Verts/ALE

Abstain (1)

1

Croatia Verts/ALE

Abstain (1)

1
4

Denmark Verts/ALE

Abstain (1)

1

Belgium Verts/ALE

2

Hungary Verts/ALE

Abstain (1)

1

Austria Verts/ALE

For (1)

3

Netherlands Verts/ALE

2

United Kingdom Verts/ALE

6
icon: NI NI
12

France NI

For (1)

1