Procedure : 2018/0196(COD)
Document stages in plenary
Document selected : A9-0206/2021

Texts tabled :

A9-0206/2021

Debates :

Votes :

Texts adopted :

P9_TA(2021)0298

<Date>{18/06/2021}18.6.2021</Date>
<NoDocSe>A9-0206/2021</NoDocSe>
PDF 183kWORD 58k

<TitreType>RECOMMENDATION FOR SECOND READING</TitreType>     <RefProcLect>***II</RefProcLect>

<Titre>on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy</Titre>

<DocRef>(06674/1/2021 – C9‑0193/2021 – 2018/0196(COD))</DocRef>


<Commission>{REGI}Committee on Regional Development</Commission>

Rapporteur: <Depute>Andrey Novakov, Constanze Krehl</Depute>

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 SHORT JUSTIFICATION
 PROCEDURE – COMMITTEE RESPONSIBLE
 FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy

(06674/1/2021 – C9‑0193/2021 – 2018/0196(COD))

(Ordinary legislative procedure: second reading)

The European Parliament,

 having regard to the Council position at first reading (06674/1/2021 – C9‑0193/2021),

 having regard to the opinion of the European Economic and Social Committee of 17 October 2018[1] and of 18 September 2020[2],

 having regard to the opinion of the Committee of the Regions of 5 December 2018[3],

 having regard to the opinion of the Court of Auditors of 25 October 2018[4],

 having regard to its position at first reading[5] on the Commission proposal to Parliament and the Council (COM(2018)0375),

 having regard to the amended Commission proposals (COM(2020)0023) and (COM(2020)0450),

 having regard to Article 294(7) of the Treaty on the Functioning of the European Union,

 having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure,

 having regard to Rule 67 of its Rules of Procedure,

 having regard to the recommendation for second reading of the Committee on Regional Development (A9-0206/2021),

1. Approves the Council position at first reading;

2. Notes that the act is adopted in accordance with the Council position;

3. Instructs its President to sign the act with the President of the Council, in accordance with Article 297(1) of the Treaty on the Functioning of the European Union;

4. Instructs its Secretary-General to sign the act, once it has been verified that all the procedures have been duly completed, and, in agreement with the Secretary-General of the Council, to arrange for its publication in the Official Journal of the European Union;

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


 

SHORT JUSTIFICATION

Background

On 29 May 2018, the Commission presented a set of legislative proposals for the EU’s Cohesion Policy  after 2020. These proposals included a new umbrella regulation with common provisions to cover policy specific rules for the ERDF, the ESF+, the Cohesion Fund and the EMFF, and with financial rules for seven shared-management funds.

The proposal was later amended by the Commission twice: first in January 2020, in order to include the new Just Transition Fund within the scope of the Regulation, and then in May 2020, as part of measures aimed to address the impact of the COVID pandemic and lessons learnt from it.

 

Committee stage

The draft report prepared by Constanze Krehl and Andrey Novakov, Co-Rapporteurs, was presented in Committee in October 2018. Subsequently, 2 052 amendments were tabled to the proposal in the REGI committee, and additional amendments were proposed by the AGRI, BUDG, CONT, ECON, EMPL, ENVI, FEMM, LIBE and TRAN committees in their opinions for REGI.

After intense negotiations, it was possible to reach a wide-ranging agreement between the political groups and, on 22 January 2019, the Committee adopted its report with 25 votes in favour, 1 against, and 9 abstentions.  The report contained amendments covering several points of key importance for the future cohesion policy:

- the re-integration of the EAFRD (shared management) in the CPR;

- an increase in the overall resources for economic, social and territorial cohesion to a total of EUR 378.1 billion (2018 prices), in order to bring it up to the same level as during the 2014-2020 period;

- an increase of the envelope for the European Territorial Cooperation (Interreg) goal to 3%;

- higher co-financing rates for the three categories of regions (more developed, transition and less developed regions);

- a gradual increase of the pre-financing rates;

- a smaller (EUR 4 billion) transfer to the Connecting Europe Facility than proposed by the Commission (EUR 10 billion), in line with the reduction of the Cohesion Fund allocation;

- the possibility for a contribution to InvestEU of up to 1% of the ERDF, ESF+, Cohesion Fund and the EMFF starting from 1 January 2023 and of 2,5% after the mid-term review (2025);

- application of measures linking effectiveness of Funds to sound economic governance (macro-economic conditionality) was limited to the suspension of commitment appropriations and not applicable to payments.

 

Plenary mandate

In February 2019, the EP plenary voted on the report. In general, it followed the recommendations of the Committee, but also introduced a number of further amendments:

- Article 15 of the proposal (macro-economic conditionality) was deleted;

- The ceiling on contributions to Invest-EU was raised to 2% of the allocation under the fund concerned from 1 January 2023 and a further 3% under the mid-term review.

- A soft form of the “golden rule” was introduced in Article 106, whereby Member States could ask the Commission for flexibility in the context of requirements of the Stability and Growth Pact, with regard to the national co-financing of investments under Cohesion Policy.

The plenary voted, by 460 votes in favour, 170 against, and 47 abstentions, for the REGI report with the amendments described above, as the mandate for the CPR inter-institutional negotiations. The same text was adopted as the EP first reading position in March 2019.

 

Inter-institutional negotiations and agreement

Inter-institutional negotiations began in March 2019 and concluded in February 2021.  COREPER II confirmed the provisional agreement on 3 March 2021. After endorsement in REGI through a single vote on 16 March 2021, and following legal-linguistic verification, Council adopted its first reading position on 27 May 2021.

The agreement reached covers the following main elements:

 

Financial and budgetary framework

EUR 330.2 billion for the ERDF, Cohesion Fund and ESF+, and an additional EUR 7.5 billion for the JTF (2018 prices), will be divided between the Investment for jobs and growth goal with EUR 329.7 billion and the European Territorial Cooperation goal with EUR 8.05 billion. A mid-term review and a flexibility amount are foreseen, providing for half of the allocations for the last two years of the programming period to be put aside for a definitive allocation after the mid-term review.

Co-financing rates are adapted in order to respond to the current challenges the regions are facing, including rates of up to 85% for the least developed regions, the Cohesion Fund, the Just Transition Fund and up to 80% for Interreg. The N+3 de-commitment rule will continue to apply until 2026 and N+2 will apply for 2027.

 

Partnership agreements

Partnership agreement will be streamlined for all Member States.

 

Multi-level governance and horizontal principles

The Parliament successfully negotiated a strengthened partnership principle and multi-level governance. It also obtained the reintroduction of the horizontal principles, including gender mainstreaming and prevention of discrimination. 

Transfers and contribution to InvestEU

Transfers to any other instrument under indirect and direct management of up to 5% of the initial allocation will be possible, as well as a contribution to InvestEU of up to 2% at the beginning of the programming period (with the Partnership Agreement) and up to 3% after 2023. Transfers of up to 20% of the initial allocation (up to 25% in certain very specific circumstances) may be made between the ERDF, ESF+ and Cohesion Fund.  The agreement on transfers from the Cohesion Fund to the Connecting Europe Facility provides extra guarantees for the country envelopes of specific Member States.

 

Climate change

Climate targets were set through a new article.  This contains precise climate targets for ERDF and Cohesion Fund (30% and 37% respectively), and ensures monitoring of respect for climate contribution targets and provides for an adjustment mechanism. The Parliament also obtained the inclusion of a climate-proofing requirement for investments in infrastructure.

 

Management and control systems and protection of EU budget

Simpler and more robust management and control system will be put in place, including in respect of the selection of operations, programme management, single audit and taking into consideration the cooperation with the European Public Prosecutor’s Office (EPPO).

Article 63 includes provisions to ensure the legality and regularity of expenditure; a recital requires the Commission to make available an integrated and interoperable information and monitoring system, including a data-mining and risk-scoring tool to access and analyse the relevant data and to encourage its use, with a view to a generalised application by the Member States. An Annex to the Regulation specifies data to be recorded and stored electronically on each operation.

 

Measures linking effectiveness of Funds to sound economic governance

Macro-economic conditionality as provided for in Article 15 of the proposal was retained. Suspension of both commitments and payments will be possible, but several adjustments were introduced. The Article will not apply to the ESF+ and Interreg.

 

Monitoring, evaluation and visibility

Requirements related to monitoring, evaluation, communication and visibility will be strengthened. Co-legislators agreed on improved provisions on publicity of EU investments, including through the technical assistance at the initiative of the Commission.

 

Measures in response to exceptional and unusual circumstances

A new article on temporary measures for the use of the Funds in response to exceptional and unusual circumstances empowers the Commission to adopt specific measures in case of the occurrence of  unusual events, outside of the control of one or more Member States.

 

Recommendation

The co-rapporteurs consider that the agreement reached by the co-legislators represents a balanced outcome. They note that Council’s first reading position is in line with the agreement: accordingly, they recommend its adoption without amendment.


PROCEDURE – COMMITTEE RESPONSIBLE

Title

Common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument

References

06674/1/2021 – C9-0193/2021 – 2018/0196(COD)

Date of Parliament’s first reading – P number

27.3.2019 T8-0310/2019

Commission proposal

COM(2018)0375 - C8-0230/2018

Receipt of Council position at first reading announced in plenary

7.6.2021

Committee responsible

 Date announced in plenary

REGI

29.1.2020

 

 

 

Rapporteurs

 Date appointed

Andrey Novakov

3.9.2019

Constanze Krehl

3.9.2019

 

 

Discussed in committee

7.9.2020

15.10.2020

3.12.2020

 

Date adopted

15.6.2021

 

 

 

Result of final vote

+:

–:

0:

41

0

1

Members present for the final vote

Mathilde Androuët, Pascal Arimont, Adrian-Dragoş Benea, Isabel Benjumea Benjumea, Tom Berendsen, Erik Bergkvist, Stéphane Bijoux, Franc Bogovič, Vlad-Marius Botoş, Rosanna Conte, Andrea Cozzolino, Corina Crețu, Rosa D’Amato, Christian Doleschal, Francesca Donato, Raffaele Fitto, Chiara Gemma, Mircea-Gheorghe Hava, Krzysztof Hetman, Peter Jahr, Manolis Kefalogiannis, Ondřej Knotek, Elżbieta Kruk, Cristina Maestre Martín De Almagro, Pedro Marques, Martina Michels, Dan-Ştefan Motreanu, Andżelika Anna Możdżanowska, Niklas Nienaß, Andrey Novakov, Younous Omarjee, Alessandro Panza, Tsvetelina Penkova, Caroline Roose, André Rougé, Susana Solís Pérez, Valdemar Tomaševski, Yana Toom, Monika Vana

Substitutes present for the final vote

Ciarán Cuffe, Isabel García Muñoz, Alin Mituța

Date tabled

18.6.2021

 


FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

41

+

ECR Group

Raffaele Fitto, Elżbieta Kruk, Andżelika Anna Możdżanowska, Valdemar Tomaševski

ID Group

Mathilde Androuët, Rosanna Conte, Francesca Donato, Alessandro Panza

NI

Chiara Gemma

PPE Group

Pascal Arimont, Isabel Benjumea Benjumea, Tom Berendsen, Franc Bogovič, Christian Doleschal, Mircea-Gheorghe Hava, Krzysztof Hetman, Peter Jahr, Manolis Kefalogiannis, Dan-Ştefan Motreanu, Andrey Novakov

Renew Group

Stéphane Bijoux, Vlad-Marius Botoş, Ondřej Knotek, Alin Mituța, Susana Solís Pérez, Yana Toom

S&D Group

Adrian-Dragoş Benea, Erik Bergkvist, Andrea Cozzolino, Corina Crețu, Isabel García Muñoz, Cristina Maestre Martín De Almagro, Pedro Marques, Tsvetelina Penkova

The Left Group

Martina Michels, Younous Omarjee

Verts/ALE Group

Ciarán Cuffe, Rosa D'Amato, Niklas Nienaß, Caroline Roose, Monika Vana

 

 

-

 

 

 

1

0

ID Group

André Rougé

 

Key to symbols:

+ : in favour

- : against

0 : abstention

 

 

[1] OJ C 62, 15.2.2019, p. 83.

[2] OJ C 429, 11.12.2020, p. 236.

[3] OJ C 86, 7.3.2019, p. 41.

[4] OJ C 17, 14.1.2019, p. 1.

[5] OJ C 108, 26.3.2021, p. 638.

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