For a brief overview of the key points of the adopted text and its significance for the citizen, please see the corresponding summary note.

With much of Europe in the grip of the coronavirus pandemic (COVID-19), on 2 April, the European Commission announced a further series of measures to help Member States cope with the socio-economic impact of the crisis. Amongst them was a proposal aiming to provide more flexibility in the use of European Structural and Investment Funds (ESI Funds).

To make ESI Funds more flexible and easier to use in order to tackle the COVID-19 epidemic, the Commission proposed a number of amendments to the regulation on the European Regional Development Fund (ERDF) and the Common Provisions Regulation (which sets out the rules governing the use of all ESI Funds). As a temporary and exceptional measure, the Commission proposes to allow for the temporary possibility of 100 % financing from the EU budget between 1 July 2020 and 30 June 2021 for programmes dealing with the impact of the pandemic, as well as additional transfer possibilities between the European Regional Development Fund (ERDF), the European Social Fund (ESF), and the Cohesion Fund (CF), and between the different categories of regions. It also proposes to exempt Member States from the need to comply with thematic concentration requirements in order to enable the redirection of resources to the areas most impacted by the current crisis. In addition, expenditure incurred in connection with completed or fully implemented operations fostering crisis-response capacity to the COVID-19 outbreak will be eligible for support under the ESI Funds. A number of simplification measures concern reporting and auditing of the ESI Funds. As a result of this proposal, national authorities may consider adjusting operations or select new ones in order to fight the COVID-19 outbreak. The proposal aims at making the best use of unspent funds and facilitating the acceleration of programme implementation by resulting in a frontloading of payment appropriations. It does not imply any changes in the multiannual financial framework annual ceilings for commitments and payments.

Under the current circumstances, Parliament's Committee on Regional Development (REGI) has requested that the urgent procedure under Rule 163 of the Rules of Procedure of the European Parliament be applied, referring the proposal without amendment direct to plenary. The Council of the EU agreed on the package on 8 April 2020. The proposal was voted during the 16-17 April EP plenary session (689 votes in favour, 6 against, one abstention). It wasapproved unanimously by the Council of the EU on 22 April. It was published in the EU Official Journal on 23 April 2020 and entered into force on the same day.

References:

• EP Legislative Observatory, Procedure file on Specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak, 2020/0054(COD)
• European Commission, Proposal for a Regulation of the European Parliament and the Council amending Regulation (EU) No 1303/2013 and Regulation (EU) No 1301/2013 as regards specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak, COM(2020) 138, 2 April 2020
• Regulation (EU) 2020/558 of the European Parliament and of the Council of 23 April 2020 amending Regulations (EU) No 1301/2013 and (EU) No 1303/2013 as regards specific measures to provide exceptional flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak

Further reading

• European Parliament, EPRS, Guide to EU Funding 2014-2020, EPRS, 2017

Author: Vasilis Margaras, Members' Research Service, legislative-train@europarl.europa.eu