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2016/0193(COD) Financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead REGI MIHAYLOVA Iskra (icon: ALDE ALDE) KREHL Constanze (icon: S&D S&D), TOMAŠIĆ Ruža (icon: ECR ECR), REINTKE Terry (icon: Verts/ALE Verts/ALE), D'AMATO Rosa (icon: EFDD EFDD)
Committee Opinion BUDG
Committee Opinion CONT
Committee Opinion ECON
Committee Opinion EMPL
Committee Opinion ENVI
Committee Opinion ITRE
Committee Opinion TRAN
Committee Opinion AGRI
Committee Opinion PECH
Committee Opinion CULT
Committee Opinion FEMM
Lead committee dossier:
Legal Basis:
TFEU 177-p1

Events

2016/12/13
   Final act published in Official Journal
Details

PURPOSE: to help those Member States mostly affected by the financial crisis to be able to continue with the implementation of the programmes on the ground, hence injecting funds into the economy.

LEGISLATIVE ACT: Regulation (EU) 2016/2135 of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability.

CONTENT: this Regulation amends Regulation (EU) No 1303/2013 establishing common provisions on the European Structural and Investment Funds with a view to ensuring that Member States mostly affected by the financial crisis are able to continue with the smooth implementation of the programmes.

(1) Article 24 of Regulation (EU) No 1303/2013 authorises the Commission to make increased payments under the ESI Fund programmes to countries facing economic difficulties. On the request of a Member State, interim payments may be increased by 10 percentage points above the co-financing rate applicable to each priority for the ERDF, ESF and the Cohesion Fund or to each measure for the EAFRD and the EMFF.

Five countries were eligible for the 10% top-up on interim payments submitted before 30 June 2016. Since then the financial assistance programmes for Cyprus, Ireland, Portugal and Romania have expired.

Only Greece is still under an adjustment programme until 30 June 2016 and benefits from related financial assistance until the third quarter of 2018. Given that Greece still faces serious difficulties with respect to its financial stability, the duration of the application of an increase in payments for Member States with temporary budgetary difficulties should be extended.

(2) Article 120(3) of Regulation (EU) No 1303/2013 requires the Commission to carry out a review to assess the justification for maintaining a maximum co-financing rate of 85 % instead of 50 % at the level of each priority axis for all operational programmes supported by the European Regional Development Fund (ERDF) and European Social Fund (ESF) in Cyprus after 30 June 2017 and to make, if necessary, a legislative proposal before 30 June 2016.

Cyprus exited from its adjustment programme in March 2016. However, the economic situation of Cyprus is still fragile.

Therefore the amendments made to Regulation (EU) No 1303/2013 allow the Commission to:

top up payments to a Member State under an adjustment programme after 30 June 2016 . It would cover the period until 30 June of the year following the calendar year in which the Member State stops receiving financial assistance; extend the exceptional cofinancing rate of 85 % for the ERDF and ESF in Cyprus until programme closure with a view to easing the pressure on the national budget and accelerating much-needed investments.

ENTRY INTO FORCE: 14.12.2016.

Documents
Regulation 2016/2135
OJ L 338 13.12.2016, p. 0034
2016/11/23
   CSL - Draft final act
Documents
00039/2016/LEX
2016/11/23
   CSL - Final act signed
2016/11/23
   EP - End of procedure in Parliament
2016/11/14
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2016/10/25
   EP - Results of vote in Parliament
Documents
Results of vote in Parliament
2016/10/25
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 627 votes to 34, with 31 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability.

Parliament adopted its position at first reading following the ordinary legislative procedure without making amendments to the Commission proposal .

In order to ensure that Member States with temporary budgetary difficulties continue implementing the European Structural and Investment Funds (ESIF) programmes and disburse funds to projects, the proposal to amend Regulation (EU) No 1303/2013 would allow the Commission to:

make top up payments to a Member State under an adjustment programme after 30 June 2016 . The increased rate shall apply to its payment applications for the period until 30 June of the year following the calendar year in which the related financial assistance comes to an end; extend the co-financing rate of 85 % for all operational programmes supported by the ERDF and ESF in Cyprus until closure of the operational programme 2014-2020.

Documents
T8-0394/2016
2016/10/17
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on Regional Development adopted the report by Iskra MIHAYLOVA (ADLE, BG) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability.

The committee recommended the Parliament to adopt its position at first reading, taking over the Commission proposal.

In order to ensure that Member States with temporary budgetary difficulties continue implementing the ESIF programmes and disburse funds to projects, the proposal to amend Regulation (EU) No 1303/2013 would allow the Commission to:

top up payments to a Member State under an adjustment programme after 30 June 2016 (currently Greece). It would cover the period until 30 June of the year following the calendar year in which the Member State stops receiving financial assistance. This approach is in line with the ESI Funds accounting year which covers the period from 1 July to 30 June. It would extend the period of eligibility up to maximum 18 months; extend the co-financing rate of 85 % for all operational programmes supported by the ERDF and ESF in Cyprus until closure of the operational programme 2014-2020.

In the explanatory statement in the draft legislative resolution, the rapporteur welcomed the Commission proposal as a focussed and budgetary-neutral solution to the temporary liquidity problems faced by two Member States. Therefore, she recommended that the committee and Parliament at plenary stage should take over the Commission proposal without amendment.

Documents
A8-0292/2016
2016/10/11
   EP - Vote in committee, 1st reading
2016/09/26
   EP - Committee draft report
Documents
PE587.491
2016/09/21
   ESC - Economic and Social Committee: opinion, report
Documents
CES4407/2016
2016/07/14
   EP - MIHAYLOVA Iskra (ALDE) appointed as rapporteur in REGI
2016/07/04
   EP - Committee referral announced in Parliament, 1st reading
2016/06/27
   EC - Legislative proposal published
Details

PURPOSE: to help those Member States mostly affected by the financial crisis to be able to continue with the implementation of the programmes on the ground, hence injecting funds into the economy.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the sustained financial and economic crisis is increasing the pressure on national financial resources, as Member States are reducing their budgets.

In this context, ensuring a smooth implementation of ESIF programmes is of particular importance as a tool for injecting funds into the economy.

Article 24 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council provides that on the request of a Member State with temporary budgetary difficulties, i.e. those countries which have received financial assistance under an adjustment programme after 21 December 2013, interim payments may be increased by 10 percentage points above the co-financing rate applicable to each priority for the ERDF , ESF , and the Cohesion Fund or to each measure for the EAFRD and the EMFF , provided the Member State submits a corresponding request. This provision currently applies until 30 June 2016. Article 120(3) of the same Regulation provides that from 1 January 2014 to 30 June 2017, the maximum co-financing rate at the level of each priority for all operational programmes supported by the ERDF and ESF in Cyprus shall be 85 % instead of 50 % applicable to more developed regions.

The Regulation requires the Commission to review these two financial provisions and make, if necessary, a legislative proposal before 30 June 2016 with a view to their possible extension. The

Five countries were eligible for the 10% top-up on interim payments submitted before 30 June 2016. Since then the financial assistance programmes for Cyprus, Ireland, Portugal and Romania have expired. This means that Greece is the only country under an adjustment programme on 30 June 2016 .

Cyprus exited its adjustment programme at the end of March 2016. However, the economic situation of Cyprus is still fragile as reflected by its sluggish growth rate, declining investment, high unemployment and stressed financial sector.

CONTENT: in order to ensure that Member States with temporary budgetary difficulties continue implementing the ESIF programmes and disburse funds to projects, the proposal to amend Regulation (EU) No 1303/2013 would allow the Commission to:

top up payments to a Member State under an adjustment programme after 30 June 2016 (currently Greece). It would cover the period until 30 June of the year following the calendar year in which the Member State stops receiving financial assistance. This approach is in line with the ESI Funds accounting year which covers the period from 1 July to 30 June. It would extend the period of eligibility up to maximum 18 months; extend the exceptional cofinancing rate of 85 % for the ERDF and ESF in Cyprus until programme closure with a view to easing the pressure on the national budget and accelerating much-needed investments.

The total financial allocation for the period from the Funds to the countries and the programmes in question will not change.

BUDGETARY IMPLICATIONS: there is no impact on commitment appropriations since no modification is proposed to the maximum amounts of ESIF financing provided for in the operational programmes for the programming period 2014-2020.

For payment appropriations, the proposal can result in a higher reimbursement to the Member States concerned. Based on the payment forecast from Member States revised by the Commission and the payment appropriations included in the 2016 budget and in the 2017 Draft Budget, the need for payment appropriations are estimated to amount to approximately EUR 544 million . The additional payment appropriations for this proposal may imply a temporary increase of payment appropriations, which would be compensated by lower payments at the end of the life cycle of the 2014-2020 programmes.

Documents
COM(2016)0418
EUR-Lex

Documents

Activities

Votes

A8-0292/2016 - Iskra Mihaylova - Vote unique #

2016/10/25 Outcome: +: 627, -: 34, 0: 31
DE IT ES FR PL GB RO PT NL BE HU EL CZ AT BG SE FI SK IE DK LT SI HR LV CY LU EE MT
Total
90
68
50
70
49
66
27
21
25
20
19
20
19
17
16
18
13
12
10
10
8
8
7
7
6
5
5
5
icon: PPE PPE
201

Germany PPE

34

Italy PPE

13

Spain PPE

15

France PPE

18

Poland PPE

22

Romania PPE

11

Portugal PPE

7

Netherlands PPE

5

Belgium PPE

4

Hungary PPE

12

Greece PPE

4

Czechia PPE

7

Austria PPE

5

Bulgaria PPE

7

Sweden PPE

3

Finland PPE

3

Slovakia PPE

5

Ireland PPE

4

Denmark PPE

For (1)

Bendt BENDTSEN
1

Lithuania PPE

2

Slovenia PPE

5

Croatia PPE

2

Latvia PPE

4

Cyprus PPE

1

Luxembourg PPE

3

Estonia PPE

For (1)

Tunne KELAM
1

Malta PPE

3
icon: S&D S&D
175

Germany S&D

25

Italy S&D

28

Spain S&D

12

France S&D

13

Poland S&D

5

United Kingdom S&D

21

Romania S&D

11

Portugal S&D

8

Netherlands S&D

3

Belgium S&D

4

Hungary S&D

4

Greece S&D

4

Czechia S&D

3

Austria S&D

5

Bulgaria S&D

3

Sweden S&D

5

Finland S&D

2

Slovakia S&D

4

Ireland S&D

For (1)

Nessa CHILDERS
1

Denmark S&D

3

Lithuania S&D

2

Slovenia S&D

For (1)

Tanja FAJON
1

Croatia S&D

For (1)

Biljana BORZAN
1

Latvia S&D

1

Cyprus S&D

2

Luxembourg S&D

For (1)

Mady DELVAUX
1

Estonia S&D

For (1)

Marju LAURISTIN
1

Malta S&D

2
icon: ALDE ALDE
63

Germany ALDE

4

Spain ALDE

8

France ALDE

6

United Kingdom ALDE

1

Romania ALDE

3

Portugal ALDE

2

Netherlands ALDE

7

Belgium ALDE

5

Czechia ALDE

4

Bulgaria ALDE

4

Sweden ALDE

3

Finland ALDE

4

Ireland ALDE

For (1)

Marian HARKIN
1

Denmark ALDE

3

Lithuania ALDE

2

Slovenia ALDE

For (1)

Ivo VAJGL
1

Croatia ALDE

2

Luxembourg ALDE

For (1)

Charles GOERENS
1

Estonia ALDE

2
icon: ECR ECR
68

Germany ECR

6

Italy ECR

2

Poland ECR

18

United Kingdom ECR

20

Romania ECR

For (1)

Monica MACOVEI
1

Netherlands ECR

2

Belgium ECR

4

Greece ECR

For (1)

Notis MARIAS
1

Czechia ECR

2

Bulgaria ECR

2

Finland ECR

2

Slovakia ECR

Abstain (1)

Richard SULÍK
3

Denmark ECR

2

Croatia ECR

For (1)

Ruža TOMAŠIĆ
1

Latvia ECR

For (1)

Roberts ZĪLE
1

Cyprus ECR

1
icon: GUE/NGL GUE/NGL
48

Germany GUE/NGL

6

Italy GUE/NGL

3

Spain GUE/NGL

11

France GUE/NGL

4

United Kingdom GUE/NGL

1

Portugal GUE/NGL

4

Netherlands GUE/NGL

3

Greece GUE/NGL

6

Czechia GUE/NGL

2

Sweden GUE/NGL

For (1)

Malin BJÖRK
1

Finland GUE/NGL

For (1)

Merja KYLLÖNEN
1

Ireland GUE/NGL

4

Cyprus GUE/NGL

2
icon: Verts/ALE Verts/ALE
48

Germany Verts/ALE

12

Spain Verts/ALE

4

France Verts/ALE

6

United Kingdom Verts/ALE

6

Netherlands Verts/ALE

2

Belgium Verts/ALE

2

Hungary Verts/ALE

2

Austria Verts/ALE

3

Sweden Verts/ALE

4

Finland Verts/ALE

For (1)

Heidi HAUTALA
1

Denmark Verts/ALE

For (1)

Margrete AUKEN
1

Lithuania Verts/ALE

For (1)

Bronis ROPĖ
1

Slovenia Verts/ALE

For (1)

Igor ŠOLTES
1

Croatia Verts/ALE

For (1)

Davor ŠKRLEC
1

Latvia Verts/ALE

1

Estonia Verts/ALE

For (1)

Indrek TARAND
1
icon: NI NI
10

Germany NI

For (1)

Udo VOIGT
1

France NI

Abstain (1)

Bruno GOLLNISCH
2

Poland NI

Against (1)

Janusz KORWIN-MIKKE
1

Hungary NI

For (1)

Zoltán BALCZÓ
1

Greece NI

5
icon: EFDD EFDD
40

Germany EFDD

Against (1)

Beatrix von STORCH
1

Italy EFDD

17

France EFDD

1

Poland EFDD

1

United Kingdom EFDD

16

Czechia EFDD

Against (1)

Petr MACH
1

Sweden EFDD

2

Lithuania EFDD

For (1)

Rolandas PAKSAS
1
icon: ENF ENF
38

Germany ENF

Against (1)

Marcus PRETZELL
1

Italy ENF

5

France ENF

Against (1)

Mylène TROSZCZYNSKI
20

Poland ENF

2

United Kingdom ENF

Against (1)

Janice ATKINSON
1

Romania ENF

1

Netherlands ENF

3

Belgium ENF

Abstain (1)

Gerolf ANNEMANS
1

Austria ENF

4

History

(these mark the time of scraping, not the official date of the change)

2021-12-18Show (11) Changes | Timetravel
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summary
procedure/Modified legal basis
Rules of Procedure EP 159
procedure/Other legal basis
Rules of Procedure EP 159
2020-01-19Show (4) Changes | Timetravel
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2019-07-06Show (39) Changes | Timetravel
activities
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docs
  • date: 2016-09-21T00:00:00 docs: url: https://dm.eesc.europa.eu/EESCDocumentSearch/Pages/redresults.aspx?k=(documenttype:AC)(documentnumber:4407)(documentyear:2016)(documentlanguage:EN) title: CES4407/2016 type: Economic and Social Committee: opinion, report body: ESC
  • date: 2016-09-26T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE587.491 title: PE587.491 type: Committee draft report body: EP
  • date: 2016-11-23T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=[%n4]%2F16&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 00039/2016/LEX type: Draft final act body: CSL
events
  • date: 2016-06-27T00:00:00 type: Legislative proposal published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0418/COM_COM(2016)0418_EN.pdf title: COM(2016)0418 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2016&nu_doc=0418 title: EUR-Lex summary: PURPOSE: to help those Member States mostly affected by the financial crisis to be able to continue with the implementation of the programmes on the ground, hence injecting funds into the economy. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: the sustained financial and economic crisis is increasing the pressure on national financial resources, as Member States are reducing their budgets. In this context, ensuring a smooth implementation of ESIF programmes is of particular importance as a tool for injecting funds into the economy. Article 24 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council provides that on the request of a Member State with temporary budgetary difficulties, i.e. those countries which have received financial assistance under an adjustment programme after 21 December 2013, interim payments may be increased by 10 percentage points above the co-financing rate applicable to each priority for the ERDF , ESF , and the Cohesion Fund or to each measure for the EAFRD and the EMFF , provided the Member State submits a corresponding request. This provision currently applies until 30 June 2016. Article 120(3) of the same Regulation provides that from 1 January 2014 to 30 June 2017, the maximum co-financing rate at the level of each priority for all operational programmes supported by the ERDF and ESF in Cyprus shall be 85 % instead of 50 % applicable to more developed regions. The Regulation requires the Commission to review these two financial provisions and make, if necessary, a legislative proposal before 30 June 2016 with a view to their possible extension. The Five countries were eligible for the 10% top-up on interim payments submitted before 30 June 2016. Since then the financial assistance programmes for Cyprus, Ireland, Portugal and Romania have expired. This means that Greece is the only country under an adjustment programme on 30 June 2016 . Cyprus exited its adjustment programme at the end of March 2016. However, the economic situation of Cyprus is still fragile as reflected by its sluggish growth rate, declining investment, high unemployment and stressed financial sector. CONTENT: in order to ensure that Member States with temporary budgetary difficulties continue implementing the ESIF programmes and disburse funds to projects, the proposal to amend Regulation (EU) No 1303/2013 would allow the Commission to: top up payments to a Member State under an adjustment programme after 30 June 2016 (currently Greece). It would cover the period until 30 June of the year following the calendar year in which the Member State stops receiving financial assistance. This approach is in line with the ESI Funds accounting year which covers the period from 1 July to 30 June. It would extend the period of eligibility up to maximum 18 months; extend the exceptional cofinancing rate of 85 % for the ERDF and ESF in Cyprus until programme closure with a view to easing the pressure on the national budget and accelerating much-needed investments. The total financial allocation for the period from the Funds to the countries and the programmes in question will not change. BUDGETARY IMPLICATIONS: there is no impact on commitment appropriations since no modification is proposed to the maximum amounts of ESIF financing provided for in the operational programmes for the programming period 2014-2020. For payment appropriations, the proposal can result in a higher reimbursement to the Member States concerned. Based on the payment forecast from Member States revised by the Commission and the payment appropriations included in the 2016 budget and in the 2017 Draft Budget, the need for payment appropriations are estimated to amount to approximately EUR 544 million . The additional payment appropriations for this proposal may imply a temporary increase of payment appropriations, which would be compensated by lower payments at the end of the life cycle of the 2014-2020 programmes.
  • date: 2016-07-04T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2016-10-11T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2016-10-17T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0292&language=EN title: A8-0292/2016 summary: The Committee on Regional Development adopted the report by Iskra MIHAYLOVA (ADLE, BG) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability. The committee recommended the Parliament to adopt its position at first reading, taking over the Commission proposal. In order to ensure that Member States with temporary budgetary difficulties continue implementing the ESIF programmes and disburse funds to projects, the proposal to amend Regulation (EU) No 1303/2013 would allow the Commission to: top up payments to a Member State under an adjustment programme after 30 June 2016 (currently Greece). It would cover the period until 30 June of the year following the calendar year in which the Member State stops receiving financial assistance. This approach is in line with the ESI Funds accounting year which covers the period from 1 July to 30 June. It would extend the period of eligibility up to maximum 18 months; extend the co-financing rate of 85 % for all operational programmes supported by the ERDF and ESF in Cyprus until closure of the operational programme 2014-2020. In the explanatory statement in the draft legislative resolution, the rapporteur welcomed the Commission proposal as a focussed and budgetary-neutral solution to the temporary liquidity problems faced by two Member States. Therefore, she recommended that the committee and Parliament at plenary stage should take over the Commission proposal without amendment.
  • date: 2016-10-25T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=27717&l=en title: Results of vote in Parliament
  • date: 2016-10-25T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0394 title: T8-0394/2016 summary: The European Parliament adopted by 627 votes to 34, with 31 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability. Parliament adopted its position at first reading following the ordinary legislative procedure without making amendments to the Commission proposal . In order to ensure that Member States with temporary budgetary difficulties continue implementing the European Structural and Investment Funds (ESIF) programmes and disburse funds to projects, the proposal to amend Regulation (EU) No 1303/2013 would allow the Commission to: make top up payments to a Member State under an adjustment programme after 30 June 2016 . The increased rate shall apply to its payment applications for the period until 30 June of the year following the calendar year in which the related financial assistance comes to an end; extend the co-financing rate of 85 % for all operational programmes supported by the ERDF and ESF in Cyprus until closure of the operational programme 2014-2020.
  • date: 2016-11-14T00:00:00 type: Act adopted by Council after Parliament's 1st reading body: EP/CSL
  • date: 2016-11-23T00:00:00 type: Final act signed body: CSL
  • date: 2016-11-23T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2016-12-13T00:00:00 type: Final act published in Official Journal summary: PURPOSE: to help those Member States mostly affected by the financial crisis to be able to continue with the implementation of the programmes on the ground, hence injecting funds into the economy. LEGISLATIVE ACT: Regulation (EU) 2016/2135 of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability. CONTENT: this Regulation amends Regulation (EU) No 1303/2013 establishing common provisions on the European Structural and Investment Funds with a view to ensuring that Member States mostly affected by the financial crisis are able to continue with the smooth implementation of the programmes. (1) Article 24 of Regulation (EU) No 1303/2013 authorises the Commission to make increased payments under the ESI Fund programmes to countries facing economic difficulties. On the request of a Member State, interim payments may be increased by 10 percentage points above the co-financing rate applicable to each priority for the ERDF, ESF and the Cohesion Fund or to each measure for the EAFRD and the EMFF. Five countries were eligible for the 10% top-up on interim payments submitted before 30 June 2016. Since then the financial assistance programmes for Cyprus, Ireland, Portugal and Romania have expired. Only Greece is still under an adjustment programme until 30 June 2016 and benefits from related financial assistance until the third quarter of 2018. Given that Greece still faces serious difficulties with respect to its financial stability, the duration of the application of an increase in payments for Member States with temporary budgetary difficulties should be extended. (2) Article 120(3) of Regulation (EU) No 1303/2013 requires the Commission to carry out a review to assess the justification for maintaining a maximum co-financing rate of 85 % instead of 50 % at the level of each priority axis for all operational programmes supported by the European Regional Development Fund (ERDF) and European Social Fund (ESF) in Cyprus after 30 June 2017 and to make, if necessary, a legislative proposal before 30 June 2016. Cyprus exited from its adjustment programme in March 2016. However, the economic situation of Cyprus is still fragile. Therefore the amendments made to Regulation (EU) No 1303/2013 allow the Commission to: top up payments to a Member State under an adjustment programme after 30 June 2016 . It would cover the period until 30 June of the year following the calendar year in which the Member State stops receiving financial assistance; extend the exceptional cofinancing rate of 85 % for the ERDF and ESF in Cyprus until programme closure with a view to easing the pressure on the national budget and accelerating much-needed investments. ENTRY INTO FORCE: 14.12.2016. docs: title: Regulation 2016/2135 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32016R2135 title: OJ L 338 13.12.2016, p. 0034 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2016:338:TOC
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2016-12-16Show (3) Changes | Timetravel
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Regulation 2016/2135
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2016-12-15Show (2) Changes | Timetravel
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2016-11-22Show (6) Changes | Timetravel
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  • group: GUE/NGL name: NÍ RIADA Liadh
2016-09-09Show (2) Changes | Timetravel
activities/1/committees/10/shadows
  • group: S&D name: KREHL Constanze
  • group: ECR name: TOMAŠIĆ Ruža
  • group: GUE/NGL name: PAPADIMOULIS Dimitrios
  • group: Verts/ALE name: REINTKE Terry
  • group: EFD name: D'AMATO Rosa
committees/10/shadows
  • group: S&D name: KREHL Constanze
  • group: ECR name: TOMAŠIĆ Ruža
  • group: GUE/NGL name: PAPADIMOULIS Dimitrios
  • group: Verts/ALE name: REINTKE Terry
  • group: EFD name: D'AMATO Rosa
2016-07-23Show (1) Changes | Timetravel
activities/0/docs/0/text

  • PURPOSE: to help those Member States mostly affected by the financial crisis to be able to continue with the implementation of the programmes on the ground, hence injecting funds into the economy.

    PROPOSED ACT: Regulation of the European Parliament and of the Council.

    ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

    BACKGROUND: the sustained financial and economic crisis is increasing the pressure on national financial resources, as Member States are reducing their budgets.

    In this context, ensuring a smooth implementation of ESIF programmes is of particular importance as a tool for injecting funds into the economy.

    • Article 24 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council provides that on the request of a Member State with temporary budgetary difficulties, i.e. those countries which have received financial assistance under an adjustment programme after 21 December 2013, interim payments may be increased by 10 percentage points above the co-financing rate applicable to each priority for the ERDF, ESF, and the Cohesion Fund or to each measure for the EAFRD and the EMFF, provided the Member State submits a corresponding request. This provision currently applies until 30 June 2016.
    • Article 120(3) of the same Regulation provides that from 1 January 2014 to 30 June 2017, the maximum co-financing rate at the level of each priority for all operational programmes supported by the ERDF and ESF in Cyprus shall be 85 % instead of 50 % applicable to more developed regions.

    The Regulation requires the Commission to review these two financial provisions and make, if necessary, a legislative proposal before 30 June 2016 with a view to their possible extension. The

    Five countries were eligible for the 10% top-up on interim payments submitted before 30 June 2016. Since then the financial assistance programmes for Cyprus, Ireland, Portugal and Romania have expired. This means that Greece is the only country under an adjustment programme on 30 June 2016.

    Cyprus exited its adjustment programme at the end of March 2016. However, the economic situation of Cyprus is still fragile as reflected by its sluggish growth rate, declining investment, high unemployment and stressed financial sector.

    CONTENT: in order to ensure that Member States with temporary budgetary difficulties continue implementing the ESIF programmes and disburse funds to projects, the proposal to amend Regulation (EU) No 1303/2013 would allow the Commission to:

    • top up payments to a Member State under an adjustment programme after 30 June 2016 (currently Greece). It would cover the period until 30 June of the year following the calendar year in which the Member State stops receiving financial assistance. This approach is in line with the ESI Funds accounting year which covers the period from 1 July to 30 June. It would extend the period of eligibility up to maximum 18 months;
    • extend the exceptional cofinancing rate of 85 % for the ERDF and ESF in Cyprus until programme closure with a view to easing the pressure on the national budget and accelerating much-needed investments.

    The total financial allocation for the period from the Funds to the countries and the programmes in question will not change.

    BUDGETARY IMPLICATIONS: there is no impact on commitment appropriations since no modification is proposed to the maximum amounts of ESIF financing provided for in the operational programmes for the programming period 2014-2020.

    For payment appropriations, the proposal can result in a higher reimbursement to the Member States concerned. Based on the payment forecast from Member States revised by the Commission and the payment appropriations included in the 2016 budget and in the 2017 Draft Budget, the need for payment appropriations are estimated to amount to approximately EUR 544 million. The additional payment appropriations for this proposal may imply a temporary increase of payment appropriations, which would be compensated by lower payments at the end of the life cycle of the 2014-2020 programmes.
2016-07-20Show (4) Changes | Timetravel
activities/1/committees/9/date
2016-07-18T00:00:00
activities/1/committees/9/rapporteur
  • group: GUE/NGL name: NÍ RIADA Liadh
committees/9/date
2016-07-18T00:00:00
committees/9/rapporteur
  • group: GUE/NGL name: NÍ RIADA Liadh
2016-07-16Show (4) Changes | Timetravel
activities/1/committees/10/date
2016-07-14T00:00:00
activities/1/committees/10/rapporteur
  • group: ALDE name: MIHAYLOVA Iskra
committees/10/date
2016-07-14T00:00:00
committees/10/rapporteur
  • group: ALDE name: MIHAYLOVA Iskra
2016-07-07Show (5) Changes
activities
  • date: 2016-06-27T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0418/COM_COM(2016)0418_EN.pdf celexid: CELEX:52016PC0418:EN type: Legislative proposal published title: COM(2016)0418 body: EC type: Legislative proposal published commission: DG: url: http://ec.europa.eu/dgs/internal_market/ title: Internal Market and Services Commissioner: DOMBROVSKIS Valdis
  • date: 2016-07-04T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: False committee_full: Agriculture and Rural Development committee: AGRI body: EP responsible: False committee_full: Budgets committee: BUDG body: EP responsible: False committee_full: Budgetary Control committee: CONT body: EP responsible: False committee_full: Culture and Education committee: CULT body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL body: EP responsible: False committee_full: Environment, Public Health and Food Safety committee: ENVI body: EP responsible: False committee_full: Women’s Rights and Gender Equality committee: FEMM body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE body: EP responsible: False committee_full: Fisheries committee: PECH body: EP responsible: True committee_full: Regional Development committee: REGI body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
committees
  • body: EP responsible: False committee_full: Agriculture and Rural Development committee: AGRI
  • body: EP responsible: False committee_full: Budgets committee: BUDG
  • body: EP responsible: False committee_full: Budgetary Control committee: CONT
  • body: EP responsible: False committee_full: Culture and Education committee: CULT
  • body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Environment, Public Health and Food Safety committee: ENVI
  • body: EP responsible: False committee_full: Women’s Rights and Gender Equality committee: FEMM
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Fisheries committee: PECH
  • body: EP responsible: True committee_full: Regional Development committee: REGI
  • body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
links
other
  • body: EC dg: url: http://ec.europa.eu/dgs/internal_market/ title: Internal Market and Services commissioner: DOMBROVSKIS Valdis
procedure
dossier_of_the_committee
REGI/8/06935
Mandatory consultation of other institutions
Economic and Social Committee Committee of the Regions
reference
2016/0193(COD)
instrument
Regulation
legal_basis
Treaty on the Functioning of the EU TFEU 177-p1
stage_reached
Awaiting committee decision
summary
Amending Regulation (EU) No 1303/2013
subtype
Legislation
title
Financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability
type
COD - Ordinary legislative procedure (ex-codecision procedure)
subject
4.70.01 Structural funds, investment funds in general, programmes
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