MEPs unwrap structural funds reform package

As co-legislator, Parliament will see that cohesion policy is not diverted from its primary aims as it is adapted to new economic and budgetary needs, said regional development and employment committee MEPs in debates Tuesday and Wednesday on cohesion policy reform proposals tabled by the Commission this autumn. MEPs want the reform negotiations completed by the end of 2012.

After discussion with national MPs on 6 October and a plenary debate with Commissioners Hahn, Andor and Ciolos on 16 November, the two committees' rapporteurs explained how they expected work to proceed. Regional Development Committee chair Danuta Hübner (EPP, PL), stressed that Parliament means to play its role as co-legislator to the full.

General regulation: a big step forward

The rapporteurs on the general regulation, Lambert van Nistelroij (EPP, NL) and Constanze Krehl (S&D, DE), welcomed the regulation on provisions common to the various EU structural funds as a "big step forward" which should enhance the efficiency with which regional policy is implemented by better integrating its components. The key topics of negotiation will be:

• greater flexibility to achieve objectives, fewer rigid quotas,

• recourse to conditionalities, notably macroeconomic,

• capping national allocations,

• and the link with the Connecting Europe Facility.

"The challenge is huge," declared Constanze Krehl (S&D, DE), stressing that scrutinising the general regulation would require "discipline on our part and close co-operation with other parliamentary committees".

Lambert van Nistelroij (EPP, NL) stressed that the number of proposals, including that one capping and macroeconomic conditionality, rejected by most MEPs, must be considered in the light of their specific projections for the Member States and regions concerned. "I fear that the whole may become more bureaucratic and that projects may become more of a beauty contest rather than addressing the substance", he said.

European Regional Development Fund (ERDF)

Rapporteur for the European Regional Development Fund (ERDF), Jan Olbrycht (EPP, PL), stressed the need to clarify the content of the general regulation before examining the specific implementing regulations. "Do the thematic objectives constitute a legal text? Who are the partners in the partnership contracts? What of eligible expenditure?" he asked.

Cohesion funds

"It seems that cohesion policy has been diverted from its original aims to serve as a tool of the EU2020 strategy", worried Victor Bostinaru (S&D, RO), rapporteur on the cohesion fund, highlighting the conflict between the shared management of the cohesion fund and the direct management of the Connecting Europe Facility.

European territorial cooperation

Riikka Manner (ALDE, FI), rapporteur on the European territorial cooperation regulation, welcomed the concentration of programme objectives, but cited three issues should be clarified: the fate of themes that are not chosen by various territorial cooperation programmes; the precise role of macro-regions and better use of neighbourhood policy instruments.

European Grouping for Territorial Cooperation (EGTC)

"The aim of the EGTC is to create a legal framework for regional cooperation" said EGTC rapporteur Joachim Zeller (EPP, DE) asking that the EGTC regulation, which has no funding implications, be approved sooner than the other regulations.

European Social Fund (ESF)

"Funds for town and country planning should not be confused with ESF funds to facilitate access to the labour market", stressed Employment Committee rapporteur on the European Social Fund Elisabeth Morin-Chartier (EPP, FR). She criticized the negative aspect of "macro-conditionality", i.e. making the grant of ESF aid conditional upon good economic governance. "Macro-econonomic conditionality of the ESF would heavily tax those who are already in great difficulty", she said, adding that "the minimum of 25% of cohesion funding destined for the ESF (i.e. €84 billion) is a guarantee, but in a time of crisis, one could have been more ambitious".

Globalisation adjustment fund

Besides the structural funds, the Commission presented to Employment and Social Affairs Committee MEPs a new proposal for a regulation on the European Globalisation Adjustment Fund (EGF). This proposal would maintain the fund for the 2014-2020 period, and extend it to cover farmers affected by new trade agreements, temporary employees and independent workers. Of the €3 billion planned for 2014-2020, farmers could benefit from up to €2.5 billion

Without disputing that farmers should have access to the fund, EGF rapporteur Marian Harkin (ALDE, IE), nonetheless stressed "the imbalance between the amount of funds allocated to farmers and those allocated to employees affected by globalisation or the economic and financial crisis", adding that the number of people losing their jobs due to the economic and financial crisis could well grow further.

In the chair: Danuta Hübner (EPP, PL), followed by Georgios Stavrakakis (S&D, EL) and Constanze Krehl (S&D, DE).