Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council establishing a European grouping of cross-border cooperation (EGCC) (COM(2004) 496 final — 2004/0168 (COD))
Date: 2005-04-06
Institutions: European Economic and Social Committee
Subjects: EU body for police and judicial cooperation, EU regional policy, cross-border cooperation, frontier region, regional cooperation

C 255/76

EN

Official Journal of the European Union

14.10.2005

Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the
European Parliament and of the Council establishing a European grouping of cross-border coopera-
tion (EGCC)

(COM(2004) 496 final — 2004/0168 (COD))

(2005/C 255/15)

On the 8 November 2004 the Council decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the abovementioned communi-
cation.

The Section for Economic and Monetary Union and Economic and Social Cohesion, which was responsible
for preparing the Committee's work on the subject, adopted its opinion on 18 March 2005 The rapporteur
was Mr Nollet.

At its 416th plenary session, held on 6 and 7 April 2005 (meeting of 6 April 2005), the European
Economic and Social Committee adopted the following opinion by 118 votes to 2 with 6 abstentions.

1. Introduction

The Commission takes the view that the Member States

1.8
do have the right to go further. The EGCC is entirely optional.

1 May 2004 marked the opening of a new chapter in

1.1
European history.

1.2
Following a long preparatory phase, ten new countries
have joined the fifteen members of the European Union. This
event provides new opportunities and prospects for develop-
ment. In order to become more efficient, the Union's institu-
tions must be brought closer to the general public and to local,
regional and Community life. For this to happen, greater atten-
tion must be paid to the quality of Community legislation.

1.3
Creating a new legal instrument for cross-border coop-
eration therefore becomes a priority for deepening this dialogue
and consequently a new challenge to take up.

On 14 July 2004 the Commission adopted a proposal
1.4
funds and
for five new regulations updating the structural
instruments for the 2007-2013 period,
including a proposal
for a new regulation establishing a European grouping of cross-
border cooperation, known as the EGCC.

1.5
The Commission considers the EGCC to be a pragmatic
response to a need expressed by the Member States. It has
proposed an optional instrument for establishing a cross-border
management structure.

1.9
At the time of writing, the Commission has not yet sent
the EESC an additional memo on the legal aspects of the
matter.

1.10
The Commission has deliberately not sought to use
this new instrument (the EGCC) to regulate other tax aspects.
The EGCC will opt for the tax system in use in a Member State
of its choice.

The Commission is not seeking harmonisation and
1.11
hence confirms that it has not attempted to draw up a more
detailed regulation. Although the issue of tax harmonisation was
not
this
raised in discussions within the EESC working group,
Commission position does not address the concerns that management
should be simplified.

1.12
The Commission has no desire to take on the work of
the Member States and thus emphasises that the EGCC is, and
will remain, an instrument of subsidiarity.

On the basis of

the Commission
1.13
considers that it would be impossible to draw up a detailed
model.

its experience,

1.14
the role of a public authority.

The Commission does not believe that NGOs perform

1.6
The Commission does not believe that such a measure
would conflict with the powers conferred on the Member
States, because these would remain responsible for the use of
the Structural Funds.

The Commission has thus set out a minimum frame-
1.15
work, under which universities, for example, could be benefici-
aries.

1.7
The Commission has taken an informed decision not to
go into the details of the convention. The parties concerned are
free to draft their own statutes.

1.16
The Commission confirms that opting for an EGCC is
not a prerequisite for receiving support from the structural
funds.

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1.17
The Commission considers that the great advantage of
its EGCC proposal is that it will apply as of 2007, without
having to wait for changes to legislation that might be needed
in the Member States.

2.5
Secondly, the legal base of this provision is unclear. The
relationship between the ERDF (Article 18) and the EGCC
needs to be clarified, particularly for Member States conferring
the responsibilities of the managing authority on the EGCC.

1.18
On 18 November 2004, the Committee of the Regions
issued a broadly favourable opinion and suggested some
amendments,
including the following: the Committee of the
Regions proposes to change the name of the new legal instru-
ment by replacing the name ‘European Grouping of Cross-
border Cooperation (EGCC)’ with the ‘European Grouping of
trans-European Cooperation (EGTC)’. The Committee of the
Regions considers that this new name would have the advan-
tage of allowing the legal instrument in question to be used for
trans-national cooperation, which is inter-regional in the sense
of Article 1(3) of the proposal for a regulation.

The Committee also wishes to consider whether the
2.6
requirements of programming, management, monitoring and
operations would enable Member States to cooperate effectively
and learn lessons from the Interreg programmes. The planning
and documentation procedures that have been drawn up (for
the period 2007-2013) should also be used to ensure greater
involvement by citizens and the social partners, as well as other
interested civil society organisations. The implementing provi-
sion on publicising the operational programmes
(Article
12(6)(d) must therefore be drawn up on time.

2. General comments

The EESC considers that the EGCC could certainly be a
2.7
useful tool for cross-border cooperation and provide a solution
to many national problems.

The EESC has taken note of the proposal for a regu-
2.1
lation establishing a European Grouping of Cross-border Coop-
eration (EGCC) — or a European Grouping of trans-European
Cooperation (EGTC) as proposed by the Committee of the
Regions.

The EESC broadly supports the EGCC proposal and the

2.2
targets set.

2.3
The EESC takes note of the case made by the Commis-
sion, in particular, the fact that establishing an EGCC would
not be compulsory.

2.3.1
easier, for example for financial arrangements.

The EGCC is likely to make cross-border cooperation

2.3.2
The EGCC can involve a number of partners in several
countries. Given in particular the increase in the number of the
Community's land and maritime borders following enlarge-
ment, closer inter-regional cooperation within the Community
must be made easier.

2.8
The EESC does harbour doubts, however, as to recogni-
tion of the EGCC in terms of financial procedures and national
managing authorities.

The Structural Funds are considered to be a vehicle for
2.9
helping those involved in development to produce a strategy
for implementation with the broadest possible public participa-
tion. Local and regional economic and social actors are
acknowledged to be stakeholders in development. It would be
useful for these to be explicitly involved in setting up an EGCC.

The EESC considers cross-border cooperation to be
2.10
crucial. Even though the EGCC will be optional, the Commis-
sion should propose a model to the actors concerned. This
model should not constitute a further constraint to be imposed
on future EGCCs; instead, it should be a model of best practice
and of support for establishing an EGCC.

2.3.3
The EGCC is not restrictive and does not constitute a
barrier to more detailed cooperation agreements. The EGCC
does not replace the Euroregion.

The EESC wishes to highlight the proposed regulation's
2.11
failure to consider an essential point — financial management.
The EGCC regulation should clarify those aspects concerning
the management of European funds.

The EESC supports the Commission initiative for a new
2.4
legal
to facilitate cooperation. These additional
instrument
regulations are intended to facilitate effective cooperation; but
in one respect they are deficient, in that there is no explicit
provision for social partner involvement or that of other inter-
ested civil society organisations in monitoring arrangements.

2.12
This clarification does not call into question the rules
on financial responsibility already in place in Member States.
The EGCC is, however, intended to simplify — more flexible
procedures for
justifying and managing financial accounts
should be proposed.

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3. Specific comments

The EESC wishes to propose the following amendments

3.1
to the Commission, for the purpose of clarification:

3.1.1 A r ti c le 1(3)

The objective of the EGCC is to facilitate and promote cross-
border cooperation between Member States, regional and local
authorities, [ADD:] and economic and social stakeholders, as
well as other interested civil society organisations, and with the
aim of reinforcing economic, social and territorial cohesion.

3.1.2 A r ti c le 2

The EGCC can be made up of Member States and/or regional
and local authorities and/or local public bodies, [ADD:] and
economic and social stakeholders, as well as other interested
civil society organisations, hereafter referred to as ‘members’.

3.1.3 A r ti c le 4(5)

The convention defines the law applicable to its interpretation
and enforcement, [ADD:] in accordance with European regula-
tions and with bilateral tax agreements between Member States,

until European tax arrangements are harmonised. The Commis-
sion should make this point clear.

3.1.4 A r ti cle 5

[ADD:] Staff management shall act in strict respect for the
place (or places) where activities are carried out, for European
regulations and for applicable social and tax legislation.

4. Conclusions

4.1
The EESC considers the EGCC to be a necessary instru-
ment and that communication and understanding would be
improved if the Commission suggested a technical and legal
reference framework. It would be advisable to make a distinc-
tion between the two fundamental aspects — the legal and the
strategic.

The EESC is committed to achieving genuine coherence
4.2
by helping the Member States and local and regional authorities
to overcome the major difficulties they experience in carrying
out and managing measures for cross-border, trans-national
the background of
and inter-regional cooperation, against
differing national laws and procedures.

Brussels, 6 April 2005.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND