REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund as regards specific measures for Greece

22.9.2015 - (COM(2015)0365 – C8‑0192/2015 – 2015/0160(COD)) - ***I

Committee on Regional Development
Rapporteur: Iskra Mihaylova
(Simplified procedure – Rule 50(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund as regards specific measures for Greece

(COM(2015)0365 – C8‑0192/2015 – 2015/0160(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–       having regard to the Commission proposal to Parliament and the Council (COM(2015)0365),

–       having regard to Article 294(2) and Article 177 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0192/2015),

–       having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–       having regard to the opinion of the European Economic and Social Committee of...[1],

–       having regard to the opinion of the Committee of the Regions of ... [2],

–       having regard to the opinion of the Committee on Budgets on the proposal's financial compatibility,

–       having regard to the undertaking given by the Council representative by letter of 16 September 2015 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–       having regard to the letter from the Committee on Fisheries,

–       having regard to Rules 59, 50(1) and 41 of its Rules of Procedure,

–       having regard to the report of the Committee on Regional Development and the opinion of the Committee on Employment and Social Affairs (A8-0260/2015),

A.     Whereas the proposed amending Regulation is an exceptional measure, aimed at providing immediate support to Greece by enabling it to access and use before the end of 2015 Union funding for cohesion policy still available from the 2007-2013 programming period, and therefore its adoption is urgent;

1.      Adopts its position at first reading, taking over the Commission proposal;

2.      Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.      Instructs its President to forward its position to the Council, the Commission and the national parliaments.

EXPLANATORY STATEMENT

Greece has been affected by the consequences of the financial crisis in a unique manner. The country has to face liquidity shortages and a lack of public funds available for the public investment needed to foster a sustainable recovery. This has created an exceptional situation which needs to be addressed with specific measures.

It is vital that the lack of liquidity and of public funds in Greece do not hinder investment under programmes supported by the European Regional Development Fund, the European Social Fund (ESF) and the Cohesion Fund and by the European Maritime and Fisheries Fund (EMFF).

The Commission has thus proposed to amend the Common Provisions Regulation in order to:

-          provide additional pre-financing for 2014-2020 cohesion policy operational programmes under the Investment for Growth and Jobs Goal and for programmes financed from the European Maritime and Fisheries Fund in Greece;

-          allow for the ceiling for the cumulative total of pre-financing and interim payments to be 100% and to increase the co-financing rate for 2007-2013 operational programmes for the Convergence and Regional competitiveness and employment objectives in Greece to 100%.

To ensure that the additional initial pre-financing amount is effectively used and reaches beneficiaries of the ESF, the Cohesion Fund and the EMFF as soon as possible so that they can make planned investments and be promptly reimbursed following the submission of their payment applications, the additional pre-financing amount should be repaid to the Commission if it is not followed by an adequate level of payment applications submitted to the Commission within a certain deadline.

The European Parliament takes note of the urgency of the support needed. Accordingly, a simplified procedure without amendments was decided for this Regulation. This procedure should contribute to the overall efforts to help Greece and allow the Regulation to enter into force as soon as possible.

OPINION OF THE COMMITTEE ON BUDGETS ON FINANCIAL COMPATIBILITY

Ms Iskra Mihaylova

Chair

Committee on Regional Development

BRUSSELS

Subject:           Opinion on questions concerning the financial compatibility of the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund as regards special measures for Greece (COM(2015)0365 – C8‑0192/2015 – 2015/0160(COD))

Dear Ms Iskra Mihaylova,

The present proposal was referred to the Committee on Budgets for opinion on 7 September 2015. After assessing the proposal, as its Chair I invited the Committee on Budgets to take up questions concerning the proposal's financial compatibility with the MFF, in accordance with Rule 41(4).

The committee considered the above question at its meeting of 14 September 2015 and assessed the above-mentioned legislative proposal, which aims, on the one hand, to increase the level of initial pre-financing for Greece's cohesion policy programmes under the Investment for Growth and Jobs Goal and programmes under the European Maritime and Fisheries Fund (EMFF) for the 2014-2020 period and, on the other hand, to increase the maximum co-financing rates for 2007-2013 operational programmes under the Convergence and the Regional competitiveness and employment objectives under each priority axis of Greece's programmes to 100% and to remove the ceiling for payments to these programmes. In addition to the frontloading of EUR 2 025 600 million, the removal of the need for national co-financing with the application of a maximum co-financing rate of 100% to the eligible expenditure is expected to generate savings for the Greek budget of close to EUR 2 billion. Through this modification of the rules of the Common Provisions Regulation, the proposed measures aim to address a critical lack of liquidity in the Greek economy and give an immediate and much-needed boost to investment, enabling a quick launch of a greater number of projects.

I am pleased to inform you that the committee welcomed the present proposal put forward by the Commission and has decided in favour of its financial compatibility with the MFF. This favourable assessment is based on the committee's understanding that the frontloading of over EUR 2 billion in payment appropriations will be fully offset within the current multiannual financial framework and hence will be budget-neutral over the 2014-2020 period.

The committee would like to take this opportunity to raise a number of questions to the Commission as regards notably the payments situation in the years 2015 and 2016, as affected also by the present proposal.

• First, Members raised questions regarding the possibility of meeting the additional payment needs in 2015 that arise from the present proposal without amending the 2015 budget as agreed by the budgetary authority. Additional information on this issue is urgently requested, in particular the reasons why the Commission does not foresee the need for a Draft Amending Budget.

• Second, in its proposal of 17 July the Commission explains that over EUR 1 billion in payments can be freed up in 2015 due to lower than expected interim payment applications. The committee would like to receive further information on the programmes concerned by these delays and the underlying reasons for them.

• Third, the committee is concerned about the impact which the expected delays in those programmes are likely to have on payment needs in subsequent years, in particular in 2016, and how this will be accommodated, particularly in view of the upcoming negotiations on the Draft Budget 2016.

• Fourth, the committee expects the Commission to clarify as soon as possible how it suggests financing the appropriations to be frontloaded in 2016, given that the Commission no longer envisages proposing an Amending Letter. The committee expects that this matter is fully clarified in the context of the negotiations on the level of payments in the 2016 budget.

• Finally, the committee understands that, in the event that Greece does not speed up considerably the pace of its payment applications for the programmes concerned before the end of 2016, it runs the risk of having to reimburse the additional initial pre-financing. The committee wishes to receive regular updates on the progress made in this regard, in order to assess whether Greece can deliver on such accelerated programme implementation within this narrow timeframe.

For the sake of responsible and forward budgetary planning, the committee looks forward to receiving more details on each of these issues as soon as possible and in any event at the moment of conciliation on the Draft Budget 2016.

At its meeting of 14 September 2015, the Committee on Budgets agreed on the above points and accordingly decided by 22 votes in favour, 3 against and 1 abstention[3] to recommend that this letter be annexed to the final report of the Committee on Regional Development so as to allow for these points to be considered and followed up by the Commission.

Yours sincerely,

Jean Arthuis

16.9.2015

OPINION of the Committee on Employment and Social Affairs

for the Committee on Regional Development

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund as regards specific measures for Greece

(COM(2015)0365 – C8‑0192/2015 – 2015/1060(COD))

Rapporteur: Thomas Händel

(Simplified procedure – Rule 50(1) of the Rules of Procedure)

The Committee on Employment and Social Affairs calls on the Committee on Regional Development, as the committee responsible, to propose that Parliament adopts its position at first reading taking over the Commission proposal.

PROCEDURE

Title	Common provisions on the European Funds as regards specific measures for Greece
References	COM(2015)0365 – C8-0192/2015 – 2015/0160(COD)
Committee responsible        Date announced in plenary	REGI 7.9.2015
Opinion by        Date announced in plenary	EMPL 7.9.2015
Rapporteur        Date appointed	Thomas Händel 3.9.2015
Financial endowment amended        Date of BUDG opinion	BUDG
Discussed in committee	15.9.2015
Date adopted	15.9.2015

ANNEX: LETTER OF THE COMMITTEE ON FISHERIES

Ms Iskra Mihaylova

Chair of the Committee on Regional Development

WIC M0 2029

Subject:           Urgent legislative proposal to amend the Regulation laying down common provisions as regards specific measures for Greece (COM(2015)0365 final)

Dear Ms Mihaylova,

As you know, the Committee on Fisheries has been asked for its opinion on the Commission proposal to amend the Regulation laying down common provisions as regards specific measures for Greece (COM(2015)0365).

At their extraordinary meeting on 7 September 2015, the coordinators decided to support application of simplified procedure under Rule 50 of the Rules of Procedure so that the proposal can be promptly adopted by the REGI committee and put to the vote in plenary at the October II part-session.

With regard to the European Maritime and Fisheries Fund (EMFF) and the relevant budget heading (Article 11 06 60 – Promoting sustainable and competitive fisheries and aquaculture, balanced and inclusive territorial development of fisheries areas and fostering the implementation of the common fisheries policy), the Committee on Fisheries would draw the REGI committee's attention to the importance of ensuring that the additional initial prefinancing amount is effectively used and reaches EMFF beneficiaries as soon as possible so that they can make planned investments and be promptly reimbursed following the submission of their payment applications.

In addition, the maximum cofinancing rates should be increased and the ceiling for payments to programmes at the end of the programming period should be raised.

Yours sincerely,

Alain CADEC

PROCEDURE

Title	Common provisions on the European Funds as regards specific measures for Greece
References	COM(2015)0365 – C8-0192/2015 – 2015/0160(COD)
Date submitted to Parliament	17.7.2015
Committee responsible        Date announced in plenary	REGI 7.9.2015
Committees asked for opinions        Date announced in plenary	BUDG 7.9.2015	EMPL 7.9.2015	PECH 7.9.2015
Not delivering opinions        Date of decision	BUDG 3.9.2015	PECH 7.9.2015
Rapporteurs        Date appointed	Iskra Mihaylova 3.9.2015
Simplified procedure - date of decision	17.9.2015
Financial endowment amended        Date of BUDG opinion	BUDG 15.9.2015
Date adopted	17.9.2015
Date tabled	23.9.2015

• [1]  Not yet published in the Official Journal.
• [2]  Not yet published in the Official Journal.
• [3]  MEPs voted : Nedzhmi Ali, Jean Arthuis, Reimer Böge, Lefteris Christoforou, Jean-Paul Denanot, Gérard Deprez, José Manuel Fernandes, Raymond Finch, Eider Gardiazabal Rubial, Jens Geier, Ingeborg Gräßle, Monika Hohlmeier, Carlos Iturgaiz, Zbigniew Kuźmiuk, Bernd Kölmel, Ernest Maragall, Clare Moody, Siegfried Mureşan, Andrey Novakov, Liadh Ní Riada, Jan Olbrycht, Younous Omarjee, Urmas Paet, Indrek Tarand, Daniele Viotti