# C_2013017EN.01000601.xml

| 19.1.2013 | EN | Official Journal of the European Union | C 17/6 |
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Resolution of the Committee of the Regions on ‘Ongoing negotiations on the multiannual financial framework’

2013/C 17/02

THE COMMITTEE OF THE REGIONS

| — | having regard to its revised opinion on the new multiannual financial framework post-2013 adopted on 9 October 2012; |
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| — | having regard to the draft conclusions of the European Council; |
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| 1. | regrets that the European Council on 22-23 November 2012 was not able to reach an agreement on the new multiannual financial framework post-2013; |
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| 2. | stresses the importance of reaching an agreement and warns of the consequences of the delay for preparing the programming in particular of the Common Strategic Framework for funds after 2014 which will have a serious impact on the investments to be made in EU's regions and cities; |
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| 3. | takes note of the recognition by the European Council that ‘the budget is important for the cohesion of the Union and for jobs and growth in all our countries’; this recognition is however incompatible with the proposals for cuts in cohesion policy by some Member States; underlines that in any case more time is needed to elaborate further on the concrete policy consequences of the figures and proposals under negotiation; |
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| 4. | stresses at the same time that the Committee of the Regions, as the EU body representing local and regional authorities, is fully aware of the economic problems faced by members of the EU and believes that the first priority must be the establishment of strong economies, with reduced red tape, leading to greater employment opportunities in Member States; |
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| 5. | reiterates its call for a credible multi-annual EU budget as an investment tool for the benefit of all EU Member States and regions of at least the same level in terms of commitment appropriations as a percentage of GNI as the one agreed for the current programming period 2007-2013 and supports the European Parliament's call for a budget that can relaunch growth in accordance with Europe 2020 goals and respond adequately to the needs of local and regional authorities in terms of territorial, economic and social cohesion; |
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| 6. | stresses the importance of the role of the European Parliament in the process of negotiation, not only with regard to the consent procedure applicable to the entire MFF but also considering that a significant number of issues in the European Council's draft conclusions (version of 22 November 2012), and in particular points in relation to subheading 1b (cohesion), heading 2 (CAP), to the Common Strategic Framework as well as horizontal issues, are subject to co-decision; |
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| 7. | recalls that the Treaties (Article 312 TFEU) contain specific provisions to deal with the possibility of the MFF not being adopted before the legal bases of all the EU's current multiannual expenditure programmes, apart from the first pillar of the Common Agricultural Policy (CAP), expire at the end of 2013; |
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| 8. | opposes the cuts to the cohesion budget. Recalls that cohesion policy is an investment tool that stimulates competitiveness in a sustainable way and contributes to a reduction of disparities between regions; |
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| 9. | recalls that for matters in relation to cohesion policy covered by Article 177 such as the method for distributing the national allocations and the capping levels for cohesion policy and rural development, the co-decision procedure with a mandatory consultation of the CoR and its standing right before the ECJ based on Article 263 (3) TFEU applies; |
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| 10. | following the opinions which it has adopted since the beginning of 2012 on the Commission's various legislative proposals, reiterates that:
a.
with regard to sub-heading 1a, 1b and the Funds covered by the Common Strategic Framework (CSF):
—
supports a stronger financing for research and innovation; —
calls for a reinstatement of the initially proposed budget for the Connecting Europe Facility to finance investments in trans-European networks supports the creation of a CSF for the two Structural Funds and the Cohesion Fund, the EAFRD and the EMFF; —
reiterates its clear and firm opposition to any form of macro-economic conditionality; —
welcomes that the proposal to establish a new category of ‘transition regions’ and the need to take account of the specific and unique situation of the outermost regions have been taken up; —
reiterates the maintenance of a safety net for all the regions falling out the Convergence Objective consisting on two thirds of the current allocation; —
supports that the level of resources to the least developed regions and Member States and the reduction of disparities in average per capita aid intensities must be ensured, as this is the priority objective of cohesion policy; —
regrets that the draft European Council conclusions propose a cut of 26 % of the ‘European territorial cohesion’ objective; welcomes however that the CoR's call for an increase of the co-financing rate to 85 % has been heard; —
supports the establishment of a co-financing rate that is 10 percentage points higher for Member States facing temporary budgetary difficulties; —
supports non-recoverable VAT being eligible expenditure for a contribution from the CSF Funds; —
reiterates its objections to the proposed performance reserve; b.
with regard to heading 2:
—
deplores that the draft European Council conclusions propose a capping of direct payments by Member States on a voluntary basis; —
urges that the direct support should be more equitably distributed between the Member States with direct payments per hectare below 90 % of the EU average in the course of the next period, starting the dynamic process of closing the gap already with the beginning of the next planning period and reaching the EU average by the mid of the next financial perspective; —
welcomes a rate of 30 % for greening; —
supports the option of budgetary transfers from the 1st to the 2nd pillar; —
supports the inclusion of transition regions in the rural development regulation; —
opposes the creation of a new reserve for crises in the agriculture sector and in particular the proposal to reimburse unspent amounts in the form of direct payments; | a. | with regard to sub-heading 1a, 1b and the Funds covered by the Common Strategic Framework (CSF):
—
supports a stronger financing for research and innovation; —
calls for a reinstatement of the initially proposed budget for the Connecting Europe Facility to finance investments in trans-European networks supports the creation of a CSF for the two Structural Funds and the Cohesion Fund, the EAFRD and the EMFF; —
reiterates its clear and firm opposition to any form of macro-economic conditionality; —
welcomes that the proposal to establish a new category of ‘transition regions’ and the need to take account of the specific and unique situation of the outermost regions have been taken up; —
reiterates the maintenance of a safety net for all the regions falling out the Convergence Objective consisting on two thirds of the current allocation; —
supports that the level of resources to the least developed regions and Member States and the reduction of disparities in average per capita aid intensities must be ensured, as this is the priority objective of cohesion policy; —
regrets that the draft European Council conclusions propose a cut of 26 % of the ‘European territorial cohesion’ objective; welcomes however that the CoR's call for an increase of the co-financing rate to 85 % has been heard; —
supports the establishment of a co-financing rate that is 10 percentage points higher for Member States facing temporary budgetary difficulties; —
supports non-recoverable VAT being eligible expenditure for a contribution from the CSF Funds; —
reiterates its objections to the proposed performance reserve; | — | supports a stronger financing for research and innovation; | — | calls for a reinstatement of the initially proposed budget for the Connecting Europe Facility to finance investments in trans-European networks supports the creation of a CSF for the two Structural Funds and the Cohesion Fund, the EAFRD and the EMFF; | — | reiterates its clear and firm opposition to any form of macro-economic conditionality; | — | welcomes that the proposal to establish a new category of ‘transition regions’ and the need to take account of the specific and unique situation of the outermost regions have been taken up; | — | reiterates the maintenance of a safety net for all the regions falling out the Convergence Objective consisting on two thirds of the current allocation; | — | supports that the level of resources to the least developed regions and Member States and the reduction of disparities in average per capita aid intensities must be ensured, as this is the priority objective of cohesion policy; | — | regrets that the draft European Council conclusions propose a cut of 26 % of the ‘European territorial cohesion’ objective; welcomes however that the CoR's call for an increase of the co-financing rate to 85 % has been heard; | — | supports the establishment of a co-financing rate that is 10 percentage points higher for Member States facing temporary budgetary difficulties; | — | supports non-recoverable VAT being eligible expenditure for a contribution from the CSF Funds; | — | reiterates its objections to the proposed performance reserve; | b. | with regard to heading 2:
—
deplores that the draft European Council conclusions propose a capping of direct payments by Member States on a voluntary basis; —
urges that the direct support should be more equitably distributed between the Member States with direct payments per hectare below 90 % of the EU average in the course of the next period, starting the dynamic process of closing the gap already with the beginning of the next planning period and reaching the EU average by the mid of the next financial perspective; —
welcomes a rate of 30 % for greening; —
supports the option of budgetary transfers from the 1st to the 2nd pillar; —
supports the inclusion of transition regions in the rural development regulation; —
opposes the creation of a new reserve for crises in the agriculture sector and in particular the proposal to reimburse unspent amounts in the form of direct payments; | — | deplores that the draft European Council conclusions propose a capping of direct payments by Member States on a voluntary basis; | — | urges that the direct support should be more equitably distributed between the Member States with direct payments per hectare below 90 % of the EU average in the course of the next period, starting the dynamic process of closing the gap already with the beginning of the next planning period and reaching the EU average by the mid of the next financial perspective; | — | welcomes a rate of 30 % for greening; | — | supports the option of budgetary transfers from the 1st to the 2nd pillar; | — | supports the inclusion of transition regions in the rural development regulation; | — | opposes the creation of a new reserve for crises in the agriculture sector and in particular the proposal to reimburse unspent amounts in the form of direct payments; |
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| a. | with regard to sub-heading 1a, 1b and the Funds covered by the Common Strategic Framework (CSF):
—
supports a stronger financing for research and innovation; —
calls for a reinstatement of the initially proposed budget for the Connecting Europe Facility to finance investments in trans-European networks supports the creation of a CSF for the two Structural Funds and the Cohesion Fund, the EAFRD and the EMFF; —
reiterates its clear and firm opposition to any form of macro-economic conditionality; —
welcomes that the proposal to establish a new category of ‘transition regions’ and the need to take account of the specific and unique situation of the outermost regions have been taken up; —
reiterates the maintenance of a safety net for all the regions falling out the Convergence Objective consisting on two thirds of the current allocation; —
supports that the level of resources to the least developed regions and Member States and the reduction of disparities in average per capita aid intensities must be ensured, as this is the priority objective of cohesion policy; —
regrets that the draft European Council conclusions propose a cut of 26 % of the ‘European territorial cohesion’ objective; welcomes however that the CoR's call for an increase of the co-financing rate to 85 % has been heard; —
supports the establishment of a co-financing rate that is 10 percentage points higher for Member States facing temporary budgetary difficulties; —
supports non-recoverable VAT being eligible expenditure for a contribution from the CSF Funds; —
reiterates its objections to the proposed performance reserve; | — | supports a stronger financing for research and innovation; | — | calls for a reinstatement of the initially proposed budget for the Connecting Europe Facility to finance investments in trans-European networks supports the creation of a CSF for the two Structural Funds and the Cohesion Fund, the EAFRD and the EMFF; | — | reiterates its clear and firm opposition to any form of macro-economic conditionality; | — | welcomes that the proposal to establish a new category of ‘transition regions’ and the need to take account of the specific and unique situation of the outermost regions have been taken up; | — | reiterates the maintenance of a safety net for all the regions falling out the Convergence Objective consisting on two thirds of the current allocation; | — | supports that the level of resources to the least developed regions and Member States and the reduction of disparities in average per capita aid intensities must be ensured, as this is the priority objective of cohesion policy; | — | regrets that the draft European Council conclusions propose a cut of 26 % of the ‘European territorial cohesion’ objective; welcomes however that the CoR's call for an increase of the co-financing rate to 85 % has been heard; | — | supports the establishment of a co-financing rate that is 10 percentage points higher for Member States facing temporary budgetary difficulties; | — | supports non-recoverable VAT being eligible expenditure for a contribution from the CSF Funds; | — | reiterates its objections to the proposed performance reserve; | | | | | | | | | | | | | | | | |
| — | supports a stronger financing for research and innovation; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | calls for a reinstatement of the initially proposed budget for the Connecting Europe Facility to finance investments in trans-European networks supports the creation of a CSF for the two Structural Funds and the Cohesion Fund, the EAFRD and the EMFF; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | reiterates its clear and firm opposition to any form of macro-economic conditionality; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | welcomes that the proposal to establish a new category of ‘transition regions’ and the need to take account of the specific and unique situation of the outermost regions have been taken up; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | reiterates the maintenance of a safety net for all the regions falling out the Convergence Objective consisting on two thirds of the current allocation; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | supports that the level of resources to the least developed regions and Member States and the reduction of disparities in average per capita aid intensities must be ensured, as this is the priority objective of cohesion policy; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | regrets that the draft European Council conclusions propose a cut of 26 % of the ‘European territorial cohesion’ objective; welcomes however that the CoR's call for an increase of the co-financing rate to 85 % has been heard; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | supports the establishment of a co-financing rate that is 10 percentage points higher for Member States facing temporary budgetary difficulties; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | supports non-recoverable VAT being eligible expenditure for a contribution from the CSF Funds; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | reiterates its objections to the proposed performance reserve; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| b. | with regard to heading 2:
—
deplores that the draft European Council conclusions propose a capping of direct payments by Member States on a voluntary basis; —
urges that the direct support should be more equitably distributed between the Member States with direct payments per hectare below 90 % of the EU average in the course of the next period, starting the dynamic process of closing the gap already with the beginning of the next planning period and reaching the EU average by the mid of the next financial perspective; —
welcomes a rate of 30 % for greening; —
supports the option of budgetary transfers from the 1st to the 2nd pillar; —
supports the inclusion of transition regions in the rural development regulation; —
opposes the creation of a new reserve for crises in the agriculture sector and in particular the proposal to reimburse unspent amounts in the form of direct payments; | — | deplores that the draft European Council conclusions propose a capping of direct payments by Member States on a voluntary basis; | — | urges that the direct support should be more equitably distributed between the Member States with direct payments per hectare below 90 % of the EU average in the course of the next period, starting the dynamic process of closing the gap already with the beginning of the next planning period and reaching the EU average by the mid of the next financial perspective; | — | welcomes a rate of 30 % for greening; | — | supports the option of budgetary transfers from the 1st to the 2nd pillar; | — | supports the inclusion of transition regions in the rural development regulation; | — | opposes the creation of a new reserve for crises in the agriculture sector and in particular the proposal to reimburse unspent amounts in the form of direct payments; | | | | | | | | | | | | | | | | | | | | | | | | |
| — | deplores that the draft European Council conclusions propose a capping of direct payments by Member States on a voluntary basis; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | urges that the direct support should be more equitably distributed between the Member States with direct payments per hectare below 90 % of the EU average in the course of the next period, starting the dynamic process of closing the gap already with the beginning of the next planning period and reaching the EU average by the mid of the next financial perspective; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | welcomes a rate of 30 % for greening; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | supports the option of budgetary transfers from the 1st to the 2nd pillar; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | supports the inclusion of transition regions in the rural development regulation; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| — | opposes the creation of a new reserve for crises in the agriculture sector and in particular the proposal to reimburse unspent amounts in the form of direct payments; | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 11. | welcomes that the draft European Council conclusions retain the food aid programme for the most deprived, but strongly opposes that its funding would come out of the ESF allocation; |
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| 12. | considers that the reduction by 47 % of the amounts earmarked for the European Globalisation Adjustment Fund compared to its current budget is in complete contradiction with the context of the on-going crisis. Understands that the draft Council conclusions have been drafted under the assumption that the future EGAF would not apply to the agricultural sector; |
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Revenue and own resources

| 13. | regrets that negotiations focused on cutting expenditures of the EU budget, without giving proper attention to the revenues and to the imperative need to reform the present system to allow the EU to dispose of own resources and with a view to abolish the current set of financial corrections and exemptions; |
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| 14. | welcomes the proposal that two thirds of the amounts collected by Member States which have committed themselves to introduce an FTT under the reinforced cooperation procedure would be levied for a new own resource in the EU budget and that the GNI-based contribution of these Member States to the EU-budget shall be reduced accordingly; |
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| 15. | instructs the President of the Committee of the Regions to submit the present resolution to the President of the European Commission, the President of the European Council, the President of the European Parliament, the Cyprus Presidency of the Council of the EU and the forthcoming Irish and Lithuanian Presidencies. |
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Brussels, 30 November 2012. The President of the Committee of the Regions Ramón Luis VALCÁRCEL SISO

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