PURPOSE: to amend Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common rules applicable to the European Structural and Investment Funds following the adoption of the 2019 budget which increases the resources of the specific allocation for the Youth Employment Initiative (YEI).

LEGISLATIVE ACT: Regulation (EU) 2019/711 of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards the resources for the specific allocation for the Youth Employment Initiative.

CONTENT: the Regulation aims to adapt the amounts of resources available for economic, social and territorial cohesion, the amount of resources for the specific allocation for the Youth Employment Initiative ('YEI') and the annual breakdown of commitment appropriations reflected in Annex VI of Regulation (EU) No 1303/2013 laying down common provisions to reflect the increase of the resources of the YEI, in line with the adopted budget for 2019.

The European Union's general budget for the financial year 2019 amended the total amount of resources for the Youth Employment Initiative (‘YEI’) by increasing commitment appropriations for the specific allocation for the YEI in 2019 by EUR 116.7 million in current prices, which brings the total YEI budget for 2019 to EUR 350 million.

The Regulation introduces also provisions to facilitate the programming of the additional resources by Member States. Due to the advanced implementation of the 2014-2020 operational programmes and in view of the legal requirement to match the YEI specific allocation by corresponding ESF support, there is a need to prevent the possible reduction of ESF support to other policy areas and to measures outside the YEI. Therefore, the Regulation allows Member States to transfer up to 50% of the additional resources for the specific allocation for the YEI to the ESF to constitute the corresponding ESF targeted investment as required by Article 22 of Regulation (EU) No 1304/2013.

ENTRY INTO FORCE: 11.5.2019.

The European Parliament adopted by 579 votes to 33 with 43 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 resources allocated to the specific allocation for the Youth Employment Initiative (YEI).

The European Parliament adopted its position at first reading under the ordinary legislative procedure without amending the Commission's proposal.

The proposal aims to adapt the amounts of resources available for economic, social and territorial cohesion, the amount of resources allocated to the specific allocation for the Youth Employment Initiative (YEI) and the annual breakdown of commitment appropriations in Annex VI to Regulation (EU) No 1303/2013 to take into account the increase in the resources of the YEI, in accordance with the budget adopted for 2019.

More specifically, the commitment appropriations for the specific allocation allocated to the EJI would be increased by an amount of EUR 116.7 million at current prices, bringing the total amount for 2019 to EUR 350 million.

Regulation (EU) No 1303/2013 laying down common provisions on the European Structural and Investment Fund would be amended to specify that the resources allocated to economic, social and territorial cohesion available for budgetary commitments for the period 2014-2020, expressed in 2011 prices, amount to EUR 330 081 919 243, of which EUR 325 938 694 233 represent the total resources allocated to the ERDF, ESF and Cohesion Fund and EUR 4 143 225 010 represent a specific allocation to the EJI.

Member States benefiting from the additional resources under the specific allocation for EYI for 2019 may request the transfer of up to 50% of these additional resources to the ESF in order to constitute the equivalent targeted investment amount.

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 resources for the specific allocation for the Youth Employment Initiative.

The committee recommended that the European Parliament adopt its position at first reading in accordance with the ordinary legislative procedure, taking over the Commission's proposal.

The proposal aims to adapt the amounts of resources available for economic, social and territorial cohesion, the amount of resources for the specific allocation for the Youth Employment Initiative (YEI) and the annual breakdown of commitment appropriations reflected in Annex VI of Regulation (EU) No 1303/2013 to reflect the increase of the resources of the YEI, in line with the adopted budget for 2019.

More specifically, commitment appropriations for the specific allocation for the YEI should be increased by an amount of EUR 116.7 million in current prices, bringing the overall amount for 2019 up to EUR 350 million.

The YEI provides support to young people living in regions where youth unemployment was higher than 25 % in 2012. In 2017, funds were increased for regions where this rate was higher than 25 % in 2016.

The YEI supports young people who are not in education, employment or training (NEETs), including the long-term unemployed and those not registered as job-seekers.

PURPOSE: to amend Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common rules applicable to the European Structural and Investment Funds following the adoption of the 2019 budget which increases the resources of the specific allocation for the Youth Employment Initiative (YEI).

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: Regulation (EU) No 1303/2013 of the European Parliament and of the Council lays down the common and general rules applicable to the European Structural and Investment Funds.

The general budget of the Union for the financial year 2019 amended the total amount of resources for the Youth Employment Initiative (YEI) by increasing commitment appropriations for the specific allocation for the YEI in 2019 by an amount of EUR 116.7 million in current prices and bringing the total amount of commitment appropriations for the specific allocation for the YEI for the entire programming period to EUR 4 527 882 072 in current prices.

For 2019, the additional resources of EUR 99 573 877 in 2011 prices are funded by the Global Margin for Commitments within the margin of the multiannual financial framework for the years 2014-2020.

It is appropriate to provide for specific measures facilitating the implementation of the YEI, due to the advanced stage of the implementation of operational programmes for the 2014-2020 programming period.

CONTENT: the proposal aims to adapt the amounts of resources available for economic, social and territorial cohesion, the amount of resources for the specific allocation for the Youth Employment Initiative (YEI) and the annual breakdown of commitment appropriations reflected in Annex VI of Regulation (EU) No 1303/2013 to reflect the increase of the resources of the YEI, in line with the adopted budget for 2019.

More specifically, commitment appropriations for the specific allocation for the YEI should be increased by an amount of EUR 116.7 million in current prices, bringing the overall amount for 2019 up to EUR 350 million.

The proposal also introduces provisions to respond to the co-legislators' request for facilitating measures to ensure the swift programming of the additional resources allocated to the YEI in 2019, so as not to hamper the overall implementation progress of the 2014-2020 operational programmes.

BUDGETARY IMPACT: the proposed amendment should not result in additional payment appropriations needs in 2019. For 2020 the budgetary implication should be limited only to additional payment appropriations to cover the annual pre-financing due on the increased YEI resources.