Commission unveils proposals for the next seven-year period of EU Structural Funds
15th October 2011
On 6th October the European Commission adopted a legislative package setting the rules for the Union’s cohesion policy and its financial instruments in the 2014-2020 period. Social inclusion, the fight against poverty and social exclusion and the social aspects in general are reinforced in the proposals.
On 6th October the European Commission adopted a legislative package setting the rules which will determine how the Union’s cohesion policy and its financial instruments, including the European Social Fund and the European Regional Development Fund, will work in the 2014-2020 period. In its proposals for the 2014-2020 financial framework (tabled in June 2011), the European Commission proposes to allocate 376 billion euros to this policy, which represents the main investment area for the EU, for the seven-year period.
The new legislative proposals are designed to reinforce the strategic dimension of the policy and to ensure that EU investment is targeted on Europe's long-term goals for growth and jobs ("Europe 2020"). Social inclusion, the fight against poverty and exclusion as well as social aspects in general are clearly reinforced in the new proposals.
The legislative package includes:
- An overarching regulation setting out common rules governing the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund, the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF). This will allow for the better combination of funds for a stronger impact of EU action.
- Three specific regulations for the ERDF, the ESF and the Cohesion Fund.
- Two regulations dealing with the European territorial cooperation goal and the European grouping of territorial cooperation (EGTC).
- Two regulations on the European Globalisation Fund (EGF) and the Programme for Social Change and Innovation.
- A communication on the European Union Solidarity Fund (EUSF)
What are the key elements of the proposals?
The Commission proposes a more focused approach on the implementation of programmes with the aim of improving efficiency and effectiveness of Fund.
Key proposals include:
- Geographical coverage. EU regions will receive support within three defined categories, instead of four, according their level of development, namely:
1- Less developed regions: GDP per capita is below 75% of the Union average, will continue to be the top priority for the policy.
2- Transition regions: this new category includes those regions whose GDP per capita is between 75% and 90% of the EU 27 average.
3- More developed regions: GDP per capita is above 90% of the average.
- Better coordination of various EU actions. A “Common Strategic Framework” will contain EU’s top priorities and apply to all Funds in order to guarantee an integrated use of the funds. Member States should specify how they plan to combine the Funds. In addition, they will also be allowed to combine ERDF, ESF and Cohesion Fund in "multi-fund" programmes to better suit their growth plans, improve coordination on the ground and achieve integrated development. The purpose is to allow the biggest impact on the ground.
- Concentration on a limited number of investment priorities closely linked to “Europe2020” priorities: employment, growth and territorial cooperation. European Commission also proposes 11 thematic objectives, some of them of direct relevance for the integration of the Roma community (see after).
- Establishment of concrete objectives and more attention paid to monitoring, evaluation and results. A Partnership Contract will be agreed between the Commission and each EU country, bringing together all the country’s commitments to delivering European objectives and targets according to the National Reform Programmes and the delivery of their national Europe2020 objectives. They will also select some of the 11 thematic objectives in which they plan to work. Social entities can also take part in the Partnership Contracts.
In addition, partnership contracts will include a number of ex ante conditions which must be in place before the funds are disbursed (for instance, the proper functioning of public procurement systems). This way Member States will demonstrate that satisfactory strategic, regulatory and institutional frameworks are in place to ensure the funds are used effectively. Also, the release of additional funds will be contingent on the fulfillment of a number of ex-post conditions related to performance. Some of these conditions are directly related to the areas of work of EURoma and its members, including the specific mention to marginalised communities and the Roma community in some of them.
To ensure that the effectiveness of the funds is not undermined by unsound macro-fiscal policies, the Commission proposes to establish a tighter link between cohesion policy and European economic governance, such as the excessive deficit procedure, excessive imbalances procedure and the European semester of economic policy coordination. It means that programmes financed by the Funds can be adapted to changing economic circumstances. In certain situations, the Commission could request the review of the Partnership Contract to support the implementation of Council recommendations. Failing to take remedial actions may lead to suspension of funding.
- Introducing incentives and rewards. EU funding will offer strong incentives to deliver Europe 2020 objectives. In addition to the ex ante and ex post conditions mentioned in the previous point, a financial performance reserve to regions who do best in reaching their goals allowing the Commission to review programmes or suspend the funding if remedial action if programmes are not implemented effectively.
- Management simplification. Whenever possible, procedures will be simplified and the IT systems will be further used; eligibility rules as well as the rules regarding management and control systems between different will be harmonised, paying particular attention to small beneficiaries.
- Possibility to have pre-funding from the Commission during all period. The amount of this advances will be paid in instalments and will be defined in the specific Regulations of each fund.
- 0,35 % of the global resources shall be allocated to technical assistance at the initiative of the Commission.
- The objectives set out include a clear territorial focus, reinforcing the local level. It also reinforces the territorial cooperation among regions (cross-border, transnational and interregional), since it offers clear EU added value.
- Territorial cohesion: there will be a clear focus on sustainable urban development with at least 5% of the ERDF resources allocated for "integrated actions" (with investment from different programmes) in this field by each Member State. In addition, the Commission will launch calls for innovative actions in urban areas and make ESF human capital investments in cities easier. Particular attention will be paid also to areas with specific natural or demographic features, with a specific additional allocation for the outermost regions and sparsely populated areas.
New Regulations and social affairs
There is a reinforcement of social affairs in general and the fight against poverty and social exclusion and the promotion of social inclusion and equal opportunities in particular:
- Several of the 11 thematic objectives that Member States have to select are directly related to the integration of Roma population such as promoting employment and supporting labour mobility (number 8) ; investing in skills, education and lifelong learning (number 9) and promoting social inclusion and combating poverty (poverty target) (number 10).
- Equal opportunities (and to a certain extent the fight against discrimination) appear as a horizontal objective for all funds.
- There is a reinforcement of relevant objectives related to the integration of Roma population such as equal opportunities and non-discrimination; promoting social inclusion and the fight against poverty and social exclusion.
- Support to measures to promote equal opportunities between women and men and to combat discrimination, with particular attention to groups such as Roma.
- The ERDF regulation includes as specific objectives promoting social inclusion and combating poverty as well as promoting employment and supporting labour mobility, investing in education, skills and lifelong learning by developing education and training infrastructure and supporting social enterprises.
- In general terms, ESF regulation is a step forwards and reinforces social field. Main changes are included here:
- The Commission recognizes the importance of human capital as a main driver for growth. Its proposal allocates a minimum share of cohesion policy Funds to the ESF; that is a minimum of ¤84 bn. The ESF share will at least be of 25% for less developed regions, 40% for transition regions and 52% for more developed ones.
- Member States will have to concentrate the ESF on a limited number of objectives and investment priorities in line with the Europe 2020 strategy in order to increase impact and reach a critical mass. This implies less dispersion of resources but more limitations regarding the topics to be addressed.
- At least 20% of the total ESF resources in each Member State shall be allocated to the thematic objective “promoting social inclusion and combating poverty” of the general regulation, compared to the average of 13% that can be observed currently. This is a milestone as it is the first time that there is a quantified target related to poverty.
- A greater emphasis is placed on combating youth unemployment, supporting active ageing and on giving opportunities to the most disadvantaged individuals and groups, such as the Roma. Furthermore, the ESF will help Member States modernise their labour markets and social policies and it will provide greater support for innovative actions and transnational cooperation. This is something new if we compare it to the previous period.
- The Commission proposes to make great strides forward in simplifying the management of ESF, in particular for small grants. This is done by promoting easier ways to reimburse costs ("simplified cost options"), making them even obligatory for small projects.
- Greater involvement of social partners and NGOs in implementing the ESF- especially in less-developed regions. In addition, operational programmes managing authorities should allocate an adequate amount of the funding to the NGOs capacity-building.
- A more active role of the Commission in facilitating transnational cooperation and promoting social innovation.
The Annex to the Regulation includes a list of 23 specific common output indicators regarding the persons that are benefiting directly from ESF investment and includes as indicator “migrants, people with a foreign background, minorities (including marginalized communities such as Roma). These data are to be provided in the annual implementation reports. It also includes output indicators regarding the entities who implement, are targeted or are supported. Every year, in addition to the annual implementation reports, the managing authority should provide electronically structured data on each investment priority.
Next steps
The current funding programmes apply until 2013. The European Commission adopted the nez proposals on 6th October, and the negotiations between the Parliament and the Council will take place in 2012 and 2013, with a view to its adoption by 2013 to allow for the start of a new generation of cohesion policy programmes in 2014.
Negotiations on the Multiannual Financial Framework for the whole EU budget will continue in parallel. The Commission has already proposed to allocate ¤336 billion for cohesion policy instruments in 2014-2020. For further information, please check http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/799&format=HTML&aged=1&language=EN&guiLanguage=en
The final allocations by Member State, and lists of eligible regions by category, will only be decided after the final adoption of the package currently being discussed.
For more detailed analysis, see http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/663
For the legislative texts please see http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm
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