PURPOSE: make changes to the resources earmarked for economic, social and territorial cohesion and the resources allocated to the 'investment for growth and jobs' goal and for the 'European territorial cooperation' goal of cohesion policy.

LEGISLATIVE ACT: Regulation (EU) 2017/2305 of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards the changes to the resources for economic, social and territorial cohesion and to the resources for the Investment for growth and jobs goal and for the European territorial cooperation goal.

CONTENT: this Regulation introduces several technical amendments to the Regulation on Common Provisions on European structural and investment funds ( Regulation (EU) No 1303/2013 ) following the Commission's review of the total amounts allocated to all Member States for the 'investment for growth and jobs' goal of cohesion policy for the period 2017-2020.

This review indicated that on the basis of the most recent statistics, there was a cumulative divergence of more than +/- 5% between the total and revised allocations for Belgium, the Czech Republic, Denmark and Estonia, Ireland, Greece, Spain, Croatia, Italy, Cyprus, the Netherlands, Slovenia, Slovakia, Finland, Sweden and the United Kingdom.

In addition, the Commission stated that, on the basis of its GNI per capita figures for 2012-2014, Cyprus would become fully eligible for support from the Cohesion Fund as of 1 January 2017.

The review of the total amounts allocated also includes the extension of the Youth Employment Initiative (YEI) over the period 2017 to 2020.

The total net effect of those adjustments is to increase the resources for economic, social and territorial cohesion by EUR 4 billion.

In terms of the amendments adopted, resources earmarked for economic, social and territorial cohesion would amount to EUR 329 978 401 458 , of which:

EUR 325 938 694 233 represents the global resources allocated to the ERDF, the ESF and the Cohesion Fund; and EUR 4 039 707 225 represents a specific allocation for the YEI.

Resources for the Investment for growth and jobs goal amount to 96.09 % of the global resources shared among less developed regions, transition regions, more developed regions, Member States supported by the cohesion fund, and outermost regions.

Resources for the European territorial cooperation goal amount to 2.69 % of the global resources available for budgetary commitment from the Funds for the period 2014-2020.

In addition, an amount of EUR 9 446 050 652 in current prices of the allocation provided for the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund which could not be committed in 2014 nor carried over to 2015 was transferred to subsequent years.

ENTRY INTO FORCE: 16.12.2017.

The European Parliament adopted by 561 votes to 46, with 38 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 the changes to the resources for economic, social and territorial cohesion and to the resources for the Investment for growth and jobs goal and for the European territorial cooperation goal.

The European Parliament’s position adopted at first reading, taking over the Commission proposal.

The legislative proposal introduces several technical changes to the Common Provisions on the European Structural and Investment Funds ( Regulation (EU) No 1303/2013 ) in order to take into account the most recent statistical data available and to bring the figures in that regulation into line with the outcome of various financial decisions that have already been taken.

The data in the Common Provisions Regulation should be updated and adjusted to take account of:

regulatory provisions for the adjustment of cohesion policy instruments for the period 2017-2020 ;

the new eligible status of Cyprus under the Cohesion Fund; transfers of appropriations between the various goals of cohesion policy; the 2017 amendment to the Multiannual Financial Framework (MFF) ( Regulation (EU, Euratom) No 2017/1123 ) made a change to the rules on the margins left available below the ceilings for commitment appropriations of the MFF (Global MFF Margin), allowing those funds to be used, inter alia, for an extension of the Youth Employment Initiative (YEI) for the 2017-2020 period; a decision was adopted in 2015 ( Regulation (EU, Euratom) 2015/623 ) to redistribute unused cohesion programme funds for 2014 (the first year of the current period) to the following years.

Under the proposed amendments, resources for economic, social and territorial cohesion would amount to EUR 329 978 401 458 , of which:

EUR 325 938 694 233 represents the global resources allocated to the ERDF, the ESF and the Cohesion Fund; EUR 4 039 707 225 represents a specific allocation for the YEI .

The proposal amends accordingly:

the resources for the ‘Investment for growth and jobs’ goal and their distribution between the less developed regions, the transition regions, the more developed regions, the Member States receiving support from the Cohesion Fund and the regions outermost; the resources allocated to the ‘European territorial cooperation’ goal.

In addition, EUR 9 446 050 652 in current prices of the allocation provided for the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund which could not be committed in 2014 nor carried over to 2015 was transferred to subsequent years.

The Committee on Regional Development adopted the report by Iskra MIHAYLOVA (ALDE, BG) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards the changes to the resources for economic, social and territorial cohesion and to the resources for the Investment for growth and jobs goal and for the European territorial cooperation goal.

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

As the explanatory statement accompanying the report pointed out, the legislative proposal introduces several technical changes to the Common Provisions on the European Structural and Investment Funds ( Regulation (EU) No 1303/2013 ) in order to take into account the most recent statistical data available and to bring the figures in that regulation into line with the outcome of various financial decisions that have already been taken.

The data in the Common Provisions Regulation should be updated and adjusted to take account of:

regulatory provisions for the adjustment of cohesion policy instruments for the period 2017-2020. The procedure provides for the adjustment of the total allocation for each Member State where the national GDP has changed by more than 5%. This is the case for 16 Member States; the new eligible status of Cyprus under the Cohesion Fund; transfers of appropriations between the various goals of cohesion policy . It is not normally possible to transfer appropriations between the ‘Investment for growth and jobs’ goal and the ‘European territorial cooperation’ goal. However, Article 94 of the CPR allows the Commission to authorise such transfers if certain conditions are met; the 2017 amendment to the Multiannual Financial Framework (MFF) (Regulation (EU, Euratom) No 2017/1123) made a change to the rules on the margins left available below the ceilings for commitment appropriations of the MFF (Global MFF Margin), allowing those funds to be used, inter alia, for an extension of the Youth Employment Initiative (YEI) for the 2017-2020 period ; a decision was adopted in 2015 ( Regulation (EU, Euratom) 2015/623 ) to redistribute unused cohesion programme funds for 2014 (the first year of the current period) to the following years.

The rapporteur advocated the approval of the proposed amendments without amendment given the urgency of continuing the YEI. It noted, however, that this proposal was submitted at a very late stage and regretted that no steps had been taken to give Parliament advance notice of this urgent proposal. The Commission is called upon to give both co-legislators equal consideration in future.

PURPOSE: to make changes to the resources for economic, social and territorial cohesion and to the resources for the Investment for growth and jobs goal and for the European territorial cooperation goal.

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 Council.

BACKGROUND : in accordance with Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Structural and Investment Funds (ESIF), the Commission carried out, in 2016, a review of the total amounts allocated to Member States for the “Investment for Growth and Jobs” goal of cohesion policy for 2017-2020,

The Commission presented in its communication of 30 June 2017 the results of this review to the Council and the European Parliament. The review indicated that:

on the basis of the most recent statistics, there is a cumulative divergence of more than +/– 5 % between the total and the revised allocations in Belgium, the Czech Republic, Denmark, Estonia, Ireland, Greece, Spain, Croatia, Italy, Cyprus, the Netherlands, Slovenia, Slovakia, Finland, Sweden and the United Kingdom ; on the basis of its gross national income (GNI) per capita figures of 2012-2014, Cyprus will become fully eligible for support from the Cohesion Fund as of 1 January 2017.

The review of the total amounts allocated also includes the decision to extend the Youth Employment Initiative (YEI) to the years 2017 to 2020. The Council decided to extend the YEI until 2020 with an amount of EUR 1.2 billion in current prices for the specific allocation for the YEI, which needs to be complemented by at least EUR 1.2 billion from targeted ESF investment.

Insofar as the revision had an impact on the annual breakdown of the allocations for the global resources by Member State under the Investment for growth and jobs goal and under the European Territorial Cooperation Goal as well as on the Youth Employment Initiative, it was implemented by Commission Implementing Decision (EU) 2016/1941. The total net effect of those adjustments is to increase the resources for economic, social and territorial cohesion by EUR 4 billion. Regulation (EU) No 1303/2016 needs to be amended accordingly.

CONTENT: the proposal for the amendment of Regulation (EU) No 1303/2013 includes:

regulatory provisions regarding the review of the allocations of cohesion policy for the years 2017-2020; the decisions to transfer resources between categories and goals; the decision to extend the YEI to the years 2017 to 2020 and the decision to transfer some commitment appropriations of 2014 to subsequent years.

In terms of the amendments proposed, the resources for economic, social and territorial cohesion available for budgetary commitment will be EUR 329 978 401 458 , of which:

EUR 325 938 694 233 represents the global resources allocated to the ERDF, the ESF and the Cohesion Fund and EUR 4 039 707 225 represents a specific allocation for the YEI.

Accordingly, the Commission proposes to adjust:

the resources for the Investment for growth and jobs goal and their allocation between less developed regions, transition regions, more developed regions, Member States supported by the Cohesion Fund and outermost regions; resources for the European territorial cooperation goal.

Furthermore, an amount of EUR 9 446 050 652 in current prices of the allocation provided for the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund which could not be committed in 2014 nor carried over to 2015 will be transferred to subsequent years.

BUDGETARY IMPLICATIONS: there is an impact on commitment appropriations equal to EUR 4 billion . These additional resources will also generate needs for additional payment appropriations for the years 2018 to 2020.