Opinion of the Committee of the Regions of 13 April 2005 on the Proposal for a Council Regulation laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund
Date: 2005-04-13
Institutions: European Committee of the Regions
Subjects: Cohesion Fund, EU regional policy, European Regional Development Fund, European Social Fund, economic and social cohesion, operational programme

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II

(Preparatory Acts)

COMMITTEE OF THE REGIONS

59th PLENARY SESSION ON 13 AND 14 APRIL 2005

Opinion of the Committee of the Regions of 13 April 2005 on the Proposal for a Council Regu-
lation laying down general provisions on the European Regional Development Fund, the European
Social Fund and the Cohesion Fund

(2005/C 231/01)

THE COMMITTEE OF THE REGIONS,

Having regard to the Proposal for a COUNCIL REGULATION laying down general provisions on the Euro-
pean Regional Development Fund, the European Social Fund and the Cohesion Fund, COM(2004)492 final
— 2004/0163 (AVC);

Having regard to the decision of the European Commission of 16 July 2004, to consult it on this subject,
under the first paragraph of Article 265 of the Treaty establishing the European Community;

Having regard to the decision of the European Parliament to consult it on this subject;

Having regard to the decision of the Council of 21 December 2004 to consult it on this subject, under the
first paragraph of Article 265 and the Article 80 of the Treaty establishing the European Community;

Having regard to the decision of its President of 26 May 2004 to instruct its Commission for Territorial
Cohesion to draw up an opinion on this subject;

Having regard to the other proposals for regulations of the European Commission concerning the Cohe-
sion Fund, COM (2004) 494 final — 2004/0166 (AVC), the European Regional Development Fund
(ERDF), COM (2004) 495 final — 2004/0167 (COD) the European Social Fund, COM(2004) 493 final —
2004/0165 (COD) and the ‘Establishment of a European grouping of cross-border cooperation (EGCC)’,
COM(2004) 496 — final 2004/0168 (COD);

Having regard to its opinion on the Third Report on Economic and Social Cohesion (CdR 120/2004 fin) (1);

Having regard to its Outlook report on Governance and simplification of the Structural Funds after 2006
(CdR 389/2002 fin) (2);

(1) JO C 318 du 22.12.2004, p. 1
(2) OJ 2003/C 256/01

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Having regard to its opinion on ‘Partnerships between local and regional authorities and social economy
organisations: contribution to employment, local development and social cohesion’, (CdR 384/2001 fin) (3);

Having regard to the draft opinion of Mr Albert Bore on the financial perspectives (Communication from
the Commission to the Council and the European Parliament: Building our common Future Policy chal-
lenges and Budgetary means of the Enlarged Union 2007-2013), adopted by the commission for Territorial
Cohesion on 26 November 2004(CdR 162/2004 rev. 3);

Having regard to the draft opinion of Mr Rosario Condorelli on the Proposal for a Regulation of the Euro-
pean Parliament and of the Council on the European Regional Development Fund (ERDF), (CdR 233/2004
rev.1);

Having regard to the draft opinion of Mr Paiva on the Proposal for a Regulation of the European Parlia-
ment and of the Council on the Cohesion Fund, (CdR 234/2004);

Having regard to the draft opinion of Mrs Fernandez Felgueroso on the Proposal for a Regulation of the
European Parliament and of the Council on the European Social Fund, (CdR …/2004);

Having regard to its draft opinion (CdR 232/2004 rev. 3) adopted by the Commission for Territorial Cohe-
sion Policy on 4 February 2005 (rapporteurs: Mr Nilsson, Kommunalrad/ORDF and Mr Tatsis, Proedros
Nomarchiakis Aftodioikissis Dramas-Kavalas-Xanthis;

Whereas:

1.

2.

3.

WHEREAS the key yardstick for the Committee's assessment continues to be the objective set out in
Article 158 of the EC Treaty. Strengthening economic and social cohesion in order to promote the
overall harmonious development of the Community and reducing differences between regions parti-
cularly in respect of reducing the development shortfalls of the most disadvantaged areas, will make
a significant contribution to strengthening the role of regional and local authorities in Europe, and
contribute to the achievement of the Lisbon and Goteborg agendas;

WHEREAS Article III-220 of the Treaty establishing a Constitution for Europe strengthens the cohe-
sion objective by introducing a territorial dimension, ‘In order to promote its overall harmonious develop-
ment, the Union shall develop and pursue its action leading to the strengthening of its economic, social and
territorial cohesion’;

WHEREAS enlargement has produced additional demands for cohesion in Europe that will require
long-term and persistent efforts.

adopted the following opinion at its 59th plenary session on 13 and 14 April 2005 (meeting of
13 April).

THE COMMITTEE OF THE REGIONS

INTRODUCTION

I. General context

1.
Holds that according to Art. 158 of the European Union
Treaty the regional dimension of the cohesion policy is all
important and it has to be strengthened after the enlargement
in order to promote the harmonious development of the Euro-
pean Union.

Judges as positive the results attained in recent years in
2.
terms of cohesion and the impact of regional policy of the
European Union with respect to strengthening the Communi-
ty's social and economic cohesion as a whole; it also reiterates
that cohesion policy endorsed by the Treaties is the most
powerful, visible and important instrument used to implement

(3) JO C 192 du 12.8.2002, p. 53

principles of solidarity and cooperation, thus representing one
of the main cornerstones of the integration between the people
and territories of the Union;

3.
Accepts the European Commission financial proposals
allocating EUR 336.1 billion to cohesion policy and the distri-
bution of this amount amongst the three objectives. It considers
the Commission's funding proposal to be adequate for conti-
nuing to aid regions in the EU15 and at
the same time
supporting the new Member States on an equal footing, if the
resources are distributed fairly and focused on solving the most
serious problems. This proposal is accepted for the time being
the Commission and the
under the express condition that
Member States will seek to secure a reasonable increase,
in
view of the new requirements due to the Enlargement.

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4.
Considers that any reduction of the budget proposed by
the E.C in whatever form will put in danger the basics of the
Cohesion Policy and consequently undermine the principle of
represents after all a distinct and essential
solidarity that
element of the identity of European integration.

special attention could be devoted to regions with serious
socio-economic problems and significant need for structural
adaptation:
should be defined according to
unique criteria; it also approves the fact that this new objective
is to apply to the regional level as a whole.

these regions

Consequently rejects any attempted budgetary adjust-
5.
ments of the amounts proposed by the Commission in terms
of allocation of funds between objectives.

Re-emphasises the inextricable linkage between an effec-
6.
tive European-wide regional policy and the implementation of
the Lisbon-Goteborg agenda. Future EU growth and competi-
tiveness across all regions of Europe will be promoted by a
continuation of EU cohesion policy involving all the regions,
rather by a re-nationalisation of this policy; EU competitiveness
depends on the competitiveness of each region.

7. Warns that delays to the start of the programming period
as a result of protracted negotiations on the financial perspec-
tives will lead to financial disruption and instability across the
local and regional authorities of the EU.

II. A new partnership for cohesion policy

8.
Approves the concentration of resources and priori-
ties on the three objectives (Convergence, regional Competi-
tiveness and Employment and Territorial Cooperation). This
will improve the internal coherence, in terms of coordination
between the Structural Funds at Community level and coordi-
nation with specific sectoral European policies, and external
coherence, in terms of link between the different action levels
(local, regional, national and European).

9. Welcomes the fact that the Cohesion Fund will apply to
Member States with GNI lying bellow 90 % of the Community
average. A political solution should be sought for Member
States that will no longer be eligible as a result of enlargement.

10. Welcomes the proposal that Structural Funds support
under the ‘Convergence Objective’ be focused on sustainable
regional and local economic development.

11. Welcomes the proposal of the Commission to find a
solution for the regions affected by the so-called statistical
effect within the new Convergence Objective. However, the
relevant provision in the draft regulation does not go far
enough, as it offers no planning certainty with regard to the
scale of the support and the application of the rules governing
aid.

Approves

12.
a
‘Competitiveness and Employment’ Objective for all the
regions that do not fall under the Convergence Objective;

the Commission's proposal

to create

13.
Agrees that the regions totally covered by Objective 1
in 2006 and not eligible under the Convergence Objective, be
classed as ‘phasing in’ regions and continue to benefit from the
Structural Funds so that they are involved in the pursuit of the
regional competitiveness and employment objective on fair and
equitable terms.

Expresses appreciation for the creation of a specific
14.
‘Territorial Cooperation Objective’ and the mainstreaming
of
transnational, cross-border and network cooperation but
also demands to include interregional co-operation as an inde-
pendent strands in the new objective. This objective must place
special emphasis on disseminating innovation and best prac-
tices in order to promote competitiveness in the EU.

15.
Agrees that the support of the Funds takes into account
the territorial dimension of Europe, with a special emphasis
on the reinvigoration of urban areas, regions dependent on
fishing, regions that present particular geographical and natural
handicaps (islands, sparsely populated areas, mountain and
border regions) and the outermost regions.

16. Welcomes the newly proposed Neighbourhood Instru-
ment as an instrument
the vision for a
Common European house and invites the European Commis-
sion to make clear proposals for the coordination between this
instrument and the objective of territorial cooperation, in order
to maximise mutual synergies.

reinforces

that

Points out that it is necessary to re-think certain trans-
17.
national spaces in order to take into account the new political
geography of Europe in view of the future enlargement, and
proposes retaining those transnational cooperation zones from
the present 2000-2006 period which have met Community
requirements of consistency and efficiency and have served to
develop the common interests and opportunities of the regions
covered by them.

18. Welcomes the integration of the gender perspective
during all the stages of the programming, implementation, and
evaluation of the Funds.

19.
Appreciates the efforts made towards simplifying the
administration, improving transparency and management of
the Funds governed by the General Regulation and urges that
the same approach be taken for the implementing provisions
to be adopted by the Commission.

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20.
Supports the proposals for strengthening partnership
and cooperation between local, regional, national and Com-
munity authorities, as well as with private and social actors, in
implementation and evaluation
the whole programming,
process for the Structural Funds and Cohesion Fund.

Is

in favour of

the introduction of

the strategic
21.
approach in the programming system because it leads to a
new political process that will have the capacity to raise both
the quality of the planning and the effectiveness and efficiency
of the management. At the same time, it offers the opportunity
for better coordination between the national strategies and the
strategic objectives of cohesion policy.

frameworks will

Considers that the introduction of the national stra-
22.
tegic
transfer management
reference
responsibilities to the managing authorities of the operational
programmes and consequently estimates that the role of the
regional and local authorities in all phases of the cohesion
policy can be further strengthened.

the

that

Recognises

23.
addition of new exceptions
regarding the application of rule N+2 increases the flexibility
and helps the regions especially those of the new Member
States to absorb in a timely and orderly manner the cohesion
policy funds although it considers that the Commission should
undertake more efforts to attain greater flexibility.

III. The views of the Committee of the Regions

Points out that simplification is not only a matter of
24.
decentralisation, but also a question of greater accountability
of the system as a whole. The Committee of the Regions under-
lines the importance for the partnership principle and the
involvement of elected representatives from local and regional
authorities and calls on the Commission to encourage Member
States to make use of the possibility for concluding tripartite
agreements, where necessary.

In the efforts of simplification,

Supports the Commission's effort to reinforce the prin-
25.
ciple of subsidiarity.
the
Committee of the Regions would therefore like to stress the
importance not to increase the centralisation at the Member
State level. It is important to secure the process of subsidiarity
as well at local and regional level. The objective must not be to
only hand over responsibility to the Member States, but to
engage relevant actors at the appropriate stage of the imple-
mentation of the cohesion policy objectives. Therefore, wishes
to see the subsidiarity principle applied within Member States
and not just between the Member States and the European
Union.

26.
Considers that the deeper involvement of regional and
local authorities in all the phases of the next programming
the
period will positively contribute to the resolution of

problems of absorption that appeared in the current program-
ming period.

27.
Calls on the European Commission to provide a suppor-
tive framework for territorial differentiation in the State
Aid rules and regulations, to allow for targeted public invest-
ment, especially where this can correct real market failure in
order to achieve the territorial cohesion objective.

Proposes that some very sparsely populated regions
28.
will be treated as a special case with due regard to the serious-
ness of the prevailing conditions, as stated in the Accession
Treaties of Sweden and Finland.

29.
Considers that the proposal on the implementation of
the European Territorial cooperation Objective should be
expressed more clearly. Considerable efforts should be made to
simplify administrative formalities especially in the case of
support programmes, which are administered on both sides of
borders, since highly complex EU legal and administrative
provisions have considerably hampered cross-border coopera-
tion thus far.

30.
Appreciates the inclusion of maritime borders for the
purpose of territorial cooperation, and demands that the limit
of 150 km should be interpreted in a flexible manner, in order
to permit meaningful cooperation between regions that have
common sea borders.

Suggests that in order to improve the effectiveness and
31.
efficiency of
regional
programmes cover a full range of strategic themes presenting
added value at European level and sufficient financial resources.

interregional

cooperation,

the

32. Welcomes the attention given by the Commission to
strengthening social inclusion and calls for more measures
able to respond to the needs of the people with disabilities.

33.
Considers that greater attention should be given to
issues relating to the ageing population, which is one of the
greatest challenges facing Europe over the coming decades.

34.
Strongly recommends that future programmes financed
by the Structural Funds cover such issues as urban renewal,
social deprivation, economic restructuring and public transport
all of which tend to concentrate in metropolitan regions. The
Structural Funds must support sustainable development
in
cities.

35.
Is concerned about establishing the rate of Community
co-financing in relation to the total public expenditure, as this
might discourage private sector participation in programmes.
Therefore, it proposes to calculate the contribution from the
Funds in relation to the total national expenditure, as an essen-
tial tool to reinforce private-public partnerships.

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Urges that the Committee of the Regions is actively
36.
consulted through participation at
the Spring European
Council's annual examination of competitiveness and cohesion
agendas. This would provide local and regional authorities with
opportunities to bring forward issues and good practice as
required for improved functioning of the open method of coor-
dination in the implementation of Lisbon and Goteborg
agendas.

37.
Argues that the national strategic reference frame-
work should be a concise strategic document, leaving sufficient
scope for the operational programmes led by the regions to
determine the specific objectives and actions for each region. In
addition, it is important to ensure that the document does not
delay the procedure for approving the operational programmes
or create further constraints on their implementation.

Asks the Commission to maintain the current system

38.
for the performance reserve.

39.
Proposes to look into a system where only reimbur-
sable VAT would not be eligible for contribution within ERDF,

similar to what the Commission has already proposed for the
ESF. At present, this creates concrete costs for actions at local
and regional level. As the VAT is an income for the State, a
model should be identified in order to remove the negative
impact on local and regional level.

40.
Considers that the N+2 rule continues to have a nega-
tive impact in the beginning of the programming period, espe-
cially in the case of the territorial cooperation objective, as well
as
reach the
threshold amount of major projects. This impact could be
considerably reduced if an increase in the payment on account
not subject to automatic decommitment were provided for.

investment projects

that do not

significant

Demands that

41.
the operational programmes, priorities
and measures make clear references to binding environmental
commitments.

42.
Holds that cohesion policy should promote a spatial
development policy able to take into account the existing trans-
european cooperation structures and the perspectives of coop-
eration under common territorial characteristics.

THE COMMITTEE OF THE REGIONS' RECOMMENDATIONS

TITLE I

OBJECTIVES AND GENERAL RULES ON ASSISTANCE

CHAPTER I

Scope and definitions

Recommendation 1

Article 2, paragraph 5

Text proposed by the Commission

CoR amendment

5)
‘public expenditure’: any public contribution to the
financing of operations whose origin is the budget of the
State, of regional and local authorities, of the European
Communities related to the Structural Funds and the Cohe-
sion Fund and any similar expenditure. Any contribution
to the financing of operations whose origin is the budget
of public law bodies or associations of one or more
regional or local authorities or public law bodies within
the meaning of Directive 2004/18/EC of the European
Parliament and of the Council of 31 March 2004 on the
coordination of procedures for the award of public works
contracts, public supply contracts and public service
contracts 9 shall be regarded as public contribution;

5)
‘public expenditure’: any public contribution to the
financing of operations whose origin is the budget of the
State, of national, regional and local authorities, of the
European Communities related to the Structural Funds and
the Cohesion Fund and any similar expenditure. Any
contribution to the financing of operations whose origin is
or associations of one or more regional or local authorities
or public law bodies within the meaning of Directive
2004/18/EC of
the
Council of 31 March 2004 on the coordination of proce-
dures for the award of public works contracts, public
supply contracts and public service contracts 9 shall be
regarded as public contribution;

the European Parliament and of

R e a son

Public expenditure is public contribution from public bodies. It is unnecessary to specify where the public
funds come from. This only creates obstacles and limitations instead of creativity at local and regional level
together with the partnership, as referred to in Article 10.

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Recommendation 2

Article 3, paragraph 1

Text proposed by the Commission

CoR amendment

The action taken by the Community under Article
1.
158 of the Treaty shall be designed to strengthen the
economic and social cohesion of the enlarged Community
in order
to promote the harmonious, balanced and
sustainable development of the Community. This action
shall be taken with the aid of the Funds, the European
Investment Bank (EIB) and other existing financial instru-
ments. It shall be aimed at meeting the challenges linked
to the economic, social and territorial disparities, which
have arisen particularly in countries and regions whose
development
to the speeding-up of
economic and social restructuring, and to the ageing of
the population.
The action taken under the Funds shall
incorporate, at
national and regional level, the Community's priorities in
favour of
sustainable development by strengthening
growth, competitiveness and employment, social inclusion,
as well as the protection and quality of the environment.

is lagging behind,

The action taken by the Community under Article
1.
158 of the Treaty shall be designed to strengthen the
economic and social cohesion of the enlarged Community
in order to promote the harmonious, balanced and sustain-
able development of the Community. This action shall be
taken with the aid of the Funds, the European Investment
Bank (EIB) and other existing financial instruments. It shall
be aimed at meeting the challenges linked to the economic,
social and territorial disparities, which have arisen particu-
larly in countries and regions whose development
is
lagging behind, to the speeding-up of economic and social
restructuring, and to the ageing of the population.
In pursuing the cohesion policy objectives the community
shall contribute to the harmonious, balanced and sustain-
able development of economic activities in the EU terri-
tories.
incorporate, at
The action taken under the Funds shall
national, regional and local level, the Community's priori-
ties in favour of sustainable development by strengthening
growth, competitiveness and employment, social inclusion,
as well as the protection and quality of the environment.

R e a son

By highlighting the aim of the cohesion policy at large and making the activities and action a second sub-
level of the paragraph, we put back the core to the common cohesion policy at Community level. The
recommendation is in line with Article 1 of Regulation 1260/99 which provides that ‘in pursuing these
objectives the community shall contribute to the…’. The drafting in the current proposal for regulation
clearly shifts the emphasis: ‘the action taken under the Funds shall incorporate at national and regional
level, the Community priorities in favour of sustainable development by strengthening growth’ (financial
goal). This provision clearly has a different emphasis from the current proposal.

Recommendation 3

Article 3, paragraph 2, point a)

Text proposed by the Commission

CoR amendment

the

and

employment

‘Convergence’ objective

a)
shall be
aimed at
the least-developed
speeding up the convergence of
Member States and regions by improving conditions for
increasing
growth
and
improving the quality of
in physical and
human capital, the development of innovation and of the
knowledge society, the adaptability to economic and social
changes, the protection and improvement of the environ-
ment as well as administrative efficiency. This objective
shall constitute the priority of the Funds.

through
investment

the

and

employment

‘Convergence’ objective

a)
shall be
aimed at
the least-developed
speeding up the convergence of
Member States and regions by improving conditions for
increasing
growth
and
improving the quality of
in physical and
human capital, infrastructure, entrepreneurship, the devel-
opment of innovation and of the knowledge society, the
adaptability to economic and social changes, the protec-
tion and improvement of
the environment as well as
administrative efficiency. This objective shall constitute the
priority of the Funds.

through
investment

R e a son

It is important for the ‘Convergence’ objective, to have a clear emphasis on infrastructure issues, occurring
not only physical infrastructures, but also human capital and entrepreneurial infrastructure as also for the
development of innovation and of the knowledge society, for the protection and improvement of the envir-
onment and the improvement of the administrative efficiency.

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Recommendation 4

Article 6, paragraph 1

Text proposed by the Commission

CoR amendment

When presenting the national strategic reference frame-
work referred to in Article 25, each Member State
concerned shall
indicate the NUTS I or II regions for
which it will present a programme for financing by the
ERDF.

When presenting the national strategic reference frame-
work referred to in Article 25, each Member State
concerned, by agreement with the regions, shall indicate
the NUTS I or II regions for which it will present a
programme for financing by the ERDF. In accordance with
Article 34(2),
can also propose
programmes at a different more appropriate territorial
level.

a Member

State

R e a son

For the sake of clarity, it is important to include here a specific reference to Article 34 (point 2), according
to which a Member State is allowed to propose operational programmes at a different territorial level than
NUTS I or NUTS II regions.

Recommendation 5

Article 7, paragraph 3

Text proposed by the Commission

CoR amendment

For the purpose of cooperation networks and exchange of
the Community shall be
experience,
eligible.

the territory of

For the purpose of cooperation networks and exchange of
experience, For interregional cooperation, which can cover
a wide field, from exchange of experience to investment
projects, the territory of the Community shall be eligi-
ble.The aim is to ensure that projects in region's adjoining
former internal borders and new external borders of the
Union will still be possible in the future.

R e a son

Trans-national cooperation takes place within one of the thirteen designated regions. In addition to this
form of cooperation, there is also a need to establish cooperation projects with regions throughout the EU
not covered by the designations ‘cross-frontier’ or ‘trans-national’ cooperation. If cooperation is confined to
the exchange of information or the establishment of networks, this does not do full justice to the needs of
regions to move to more extensive cooperation with other regions in the EU. The broad field of cross-
border and trans-national cooperation therefore also needs to embrace interregional cooperation.

CHAPTER IV

Principles of assistance

Recommendation 6

Article 10 paragraph 1

Text proposed by the Commission

Amendment

Assistance from the Funds
shall be decided by the
Commission within the framework of close cooperation,
hereinafter ‘partnership’, between the Commission and a
Member State. The Member State organises, in accordance
with current national rules and practices, a partnership
with the authorities and bodies which it designates,
namely:

Assistance from the Funds
shall be decided by the
Commission within the framework of close cooperation,
hereinafter ‘partnership’, between the Commission and a
Member State and the regions. The Member State orga-
nises, in accordance with current national rules and prac-
tices, a partnership with the appropriate authorities and
bodies which it designates, namely:

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R e a son

It is necessary for the regulation to guarantee the involvement of the regions in all phases of the negotia-
tion of the Funds. The Commission's proposal makes the regions' involvement in the negotiation procedure
subject to their designation by the Member State. It is essential that the regions be direct discussion part-
ners of the Commission when negotiating Fund intervention in this area of responsibility.

In its White Paper on Governance the Commission itself points out that the regions' increased responsi-
bility for implementing Community policies (and it refers specifically to cohesion policy) has not been
matched by an increase in their real participation in the EU. It adds that this is because national govern-
ments do not sufficiently involve the regions in the preparation of their positions on Community policies.
One way of ensuring that the regions participate in cohesion policy is for the regulations to lay down rules
for their involvement in the negotiating procedure.

In conclusion, the regulation should recognise the regions as managing and paying authorities, and for this
it is necessary that they be directly involved in consultations with the Commission during all phases of the
Fund negotiating procedure.

Recommendation 7

Article 10, paragraph 1 c)

Text proposed by the Commission

CoR amendment

c)
any other appropriate body representing civil society,
environmental partners, non-governmental organisations,
and bodies responsible for promoting equality between
men and women.

c)
any other appropriate body representing civil society,
environmental partners, non-governmental organisations,
social economy organisations, and bodies responsible for
promoting equality between men and women.

R e a son

The partnership should strengthen the inclusion of the social economy organisations.

Recommendation 8

Article 10, paragraph 2

Text proposed by the Commission

CoR amendment

2.
The partnership shall be conducted in full compli-
ance with the respective institutional, legal and financial
jurisdiction of each partner category. The partnership shall
cover preparation and monitoring of the national strategic
reference framework as well as the preparation, implemen-
tation, monitoring and evaluation of
the operational
the
programmes. Member States shall
appropriate partners, and particularly the regions, in the
various programming stages within the time limit set for
each stage.

involve each of

2.
The partnership shall be conducted in full compli-
ance with the respective institutional, legal and financial
jurisdiction of each partner category. The partnership shall
cover preparation and monitoring of the national strategic
reference framework as well as the preparation, financing,
implementation, monitoring and evaluation of the opera-
tional programmes. Member States shall involve each of
the appropriate partners, and particularly the regions and
cities, in the various programming stages within the time
limit set appropriate for having an impact on each stage.

R e a son

It is important that the partnership will be given a chance to have an impact on the programming stages.
This can only be done with appropriate amount of time to its disposal. As well an impact on the issues of
financing is important and should be added.

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CHAPTER V

Financial framework

Recommendation 9

Article 15 (2)

Text proposed by the Commission

Article 15

Global resources

CoR amendment

Article 15

Global resources

1.
The resources available for commitment from the
Funds for the period 2007 to 2013 shall be EUR 336.1
billion at 2004 prices in accordance with the annual
breakdown is shown in the Annex 1.
For the purpose of their programming and subsequent
inclusion in the general budget of the European Commu-
nities, these amounts referred to in the first subparagraph
shall be indexed at to 2 % per year.
The breakdown of budgetary resources between the objec-
tives defined in Article 3(2) shall be such to achieve a
significant concentration on the regions of the ‘Conver-
gence’ objective.
2.
The Commission shall make indicative annual break-
downs by Member States in accordance with the criteria
established in Articles 16, 17 and 18 and without preju-
dice to the provisions referred to in Articles 20 and 21.

1.
The resources available for commitment from the
Funds for the period 2007 to 2013 shall be EUR 336.1
billion at 2004 prices in accordance with the annual
breakdown is shown in the Annex 1.
For the purpose of their programming and subsequent
inclusion in the general budget of the European Commu-
nities, these amounts referred to in the first subparagraph
shall be indexed at to 2 % per year.
The breakdown of budgetary resources between the objec-
tives defined in Article 3(2) shall be such to achieve a
significant concentration on the regions of the ‘Conver-
gence’ objective.
2.
The Commission shall make indicative annual break-
downs by Member States in accordance with the criteria
established in Articles 16, 17 and 18, and by region, and
without prejudice to the provisions referred to in Articles
20 and 21. Particular attention should be paid to areas
with severe and permanent natural and demographic
handicaps, such as the northernmost regions with very
low population density, and island, cross-border and
mountainous areas.

R e a son

The regions should be involved in the distribution of the Funds. In making the breakdowns by Member
State, the Commission proposal places this distribution exclusively in the hands of the Member States. In
fact, the first draft of the Third Cohesion Report established that the funding would be distributed on the
basis of an indicative breakdown by region laid down by the Commission. This subparagraph was dropped
from the final report. It should also be pointed out that the criteria set out in Articles 16, 17 and 18 cover
distribution by the State and thus criteria for distribution by the regions should be added.

The second addition is necessary to bring the general regulation into line with the relevant provisions of
the constitutional Treaty (Article III-220).

Recommendation 10

Article 17, paragraph 2

Text proposed by the Commission

CoR amendment

2.
The appropriations referred to in paragraph 1, sub-
shall be divided equally between the
paragraph a)
programmes financed by the ERDF and the programmes
financed by the ESF.

2.
The appropriations referred to in paragraph 1, sub-
shall be divided equally between the
paragraph a)
programmes financed by the ERDF and the programmes
financed by the ESF., according to a ratio to be determined
on the basis of regional conditions; there should also be a
substantial level of decentralisation in respect of the imple-
mentation of these provisions.

R e a son

The switch from an economy based on agriculture and traditional manufacturing industries to a knowl-
edge-based economy requires considerable efforts on the part of the business world to bring about innova-
tion in the field of products, processes and marketing. Assistance under the ERDF would be a more effec-
tive vehicle for achieving this goal than assistance under the ESF.

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TITLE II

STRATEGIC APPROACH TO COHESION

CHAPTER I

Community strategic guidelines on cohesion

Recommendation 11

Article 23

Text proposed by the Commission

CoR amendment

For each of the objectives of the Funds, those guidelines
shall in particular give effect to the priorities of the Com-
munity with a view to promote balanced, harmonious and
sustainable development.

For each of the objectives of the Funds, those guidelines
shall in particular give effect to the priorities of the Com-
munity with a view to promote balanced, harmonious and
sustainable development, mainly through the reduction of
regional disparities in conformity with Lisbon strategy and
Gothenburg objectives

R e a son

The CoR wishes to recall that the basic objective of regional policy is the reduction of regional disparities,
as stated in Article 158 of the Treaty.

Recommendation 12

Article 25, paragraph 1

Text proposed by the Commission

CoR amendment

The Member State shall present a national strategic refer-
ence framework which ensures that Community structural
aid is consistent with the Community strategic guidelines,
and which identifies the link between Community priori-
ties, on the one hand, and national and regional priorities
in order to promote sustainable development, and the
national action plan on employment, on the other hand.
The framework shall constitute a reference instrument for
preparing the programming of the Funds.

The Member State shall present a national strategic refer-
ence framework which ensures that Community structural
aid is consistent with the Community strategic guidelines,
and which identifies the link between Community priori-
ties, on the one hand, and national, regional and urban
priorities in order to promote sustainable development,
and the national action plan on employment, on the other
hand.
The framework shall constitute a concise and strategic
reference instrument for preparing the programming of
the Funds.

R e a son

It is sensible to add a reference to urban priorities in the light of the requirement that each national stra-
tegic reference framework specifies the priorities for urban interventions.

The CoR thinks that sufficient scope should be left for the operation programmes led by the Regions to
determine the specific objectives and actions for each Region.

Recommendation 13

Article 25, paragraph 2

Text proposed by the Commission

CoR amendment

Each national strategic reference framework shall
the Member State's

2.
contain a summary description of
strategy and its operational implementation.

Each national strategic reference framework shall
2.
contain a summary description of
the Member State's
strategy and its operational implementation. This strategy
should be guided by the partnership approach as defined
in article 10.

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R e a son

It is good to establish a national strategic framework but it should be strongly influenced by the local and
regional situation.

Recommendation 14

Article 27 paragraph 1

Text proposed by the Commission

CoR amendment

Annual report by Member States

Annual report by Member States

For the first time in 2008 and at the latest by 1 October
each year, each Member State shall present to the Commis-
sion a report on the progress in implementing its strategy
and achieving its goals, taking particular account of the
imple-
indicators
menting the Community strategic guidelines on cohesion,
as well as of available evaluations.
The report shall refer to the national action plan on
employment.

set, and their contribution towards

For the first time in 2008 2009 and at the latest by 1
October each year, each Member State shall present to the
Commission a report on the progress in implementing its
strategy and achieving its goals, taking particular account
of the indicators set, and their contribution towards imple-
menting the Community strategic guidelines on cohesion,
as well as of available evaluations.
The report shall refer to the national action plan on
employment.

R e a son

The beginning of the strategic programming leading to a proper evaluation of cohesion policy should be
2009.

TITLE III

PROGRAMMING

CHAPTER I

General provisions on the structural funds and the cohesion fund

Recommendation 15

Article 31, paragraph 5

Text proposed by the Commission

CoR amendment

The Commission shall adopt each operational program as
soon as possible after
formal submission by the
Member State.

its

The Commission shall adopt each operational program as
soon as possible within six months after its formal submis-
sion by the Member State.

R e a son

There must be a limit in time for how long the Member State will have to wait for the final decision by the
Commission. The amendment results adhere to a more precise timetable.

Recommendation 16

Article 32, paragraph 1

Text proposed by the Commission

CoR amendment

At the initiative of the Member State or the Commission,
and after approval by the Monitoring Committee, opera-
tional programmes shall be re-examined and, if necessary,
revised for the rest of the programming period following
significant socioeconomic changes or in order to take
greater or different account of the Community priorities,
particularly in the light of Council conclusions.

At the initiative of the Member State, or the Commission,
or the eligible areas concerned, and after approval by the
Monitoring Committee, operational programmes shall be
re-examined and, if necessary, revised for the rest of the
programming period following significant socioeconomic
changes or in order to take greater or different account of
the Community priorities, particularly in the light of
Council conclusions. This revision procedure will conform
to Article 10.

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20.9.2005

R e a son

It is of importance that the partnership, as stated in Article 10, will have influence on the decision of re-
examination of the programmes.

Recommendation 17

Article 32, paragraph 2

Text proposed by the Commission

CoR amendment

2.
The Commission shall adopt a decision on the
requests for revision of operational programmes as soon
as possible after formal submission of the request by the
Member State.

2.
The Commission shall adopt a decision on the
requests for revision of operational programmes as soon as
possible within three months after formal submission of
the request by the Member State.

R e a son

There must be a limit in time for how long the Member State will have to wait for the final decision by the
Commission. The amendment results adhere to a more precise timetable.

Recommendation 18

Article 36, paragraph 4

Text proposed by the Commission

CoR amendment

4.
Operational programmes financed by the ERDF shall
contain in addition to the ‘Convergence’ and the ‘Regional
competitiveness and employment’ objective:
a) actions for inter-regional cooperation with, at least, one
region of another Member State in each regional
programme;

4.
Operational programmes financed by the ERDF may
contain in addition to the ‘Convergence’ and the ‘Regional
competitiveness and employment’ objective:
a) actions aiming for inter-regional cooperation with, at
least, one region of another Member State in each
regional programme;

R e a son

At the moment of the decision of the actions, the specified region must be stated. It is not possible to
determine in advance which region or regions to cooperate with on programming level. The projects them-
selves have to be able to decide upon the region/regions to cooperate with.

Recommendation 19

Article 40, paragraph 3

Text proposed by the Commission

CoR amendment

3.
The Commission shall adopt a decision as soon as
possible after the submission by the Member State or the
managing authority of all the information referred to in
Article 39.

3.
The Commission shall adopt a decision as soon as
possible at the latest six months after the submission by
the Member State or the managing authority of all the
information referred to in Article 39.

R e a son

There must be a limit in time for how long the Member State will have to wait for the final decision by the
Commission. The amendment results adhere to a more precise timetable.

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Recommendation 20

Article 41, paragraph 1

Text proposed by the Commission

CoR amendment

The managing authority may entrust the management and
implementation of a part of an operational programme to
one or more intermediate bodies, designated by the mana-
ging authority, including local authorities, regional devel-
opment bodies or non-governmental organisations, which
shall ensure the implementation of one or more operations
in accordance with the provisions of an agreement
concluded between the managing authority and that body.

The managing authority may entrust the management and
implementation of a part of an operational programme to
one or more intermediate bodies, designated by the mana-
including regional and local authorities,
ging authority,
regional development bodies or non-governmental organi-
sations, which shall ensure the implementation of one or
more operations in accordance with the provisions of an
agreement concluded between the managing authority and
that body.

R e a son

It seems appropriate to specify that regional authorities may also be entrusted the management and imple-
mentation of a part of an operational programme through a global grant.

TITLE IV

EFFECTIVENESS

CHAPTER I

Evaluation

Recommendation 21

Article 45 paragraph 1

Text proposed by the Commission

CoR amendment

the Community,

The strategic guidelines of

1.
the
national strategic reference framework, and the operational
programmes shall be the subject of evaluation. Evaluations
shall aim to improve the quality, effectiveness and consis-
tency of Fund assistance and the implementation of opera-
tional programmes. They shall also appraise their impact
with respect to the strategic objectives of the Community,
to Article 158 of the Treaty and to the specific structural
problems
and regions
concerned, while taking account of the needs of sustain-
able development and of the relevant Community legisla-
tion concerning environmental impact and strategic envir-
onmental assessment.

affecting the Member States

the Community,

The strategic guidelines of

1.
the
national strategic reference framework, and the operational
programmes shall be the subject of evaluation. Evaluations
shall aim to improve the quality, effectiveness and consis-
tency of Fund assistance and the implementation of opera-
tional programmes. They shall also appraise their impact
with respect to the strategic objectives of the Community,
to Article 158 of the Treaty and to the specific structural
problems
and regions
concerned, while taking account of the needs of sustain-
able development and of the relevant Community legisla-
tion concerning environmental impact and strategic envir-
onmental assessment, equality between men and women,
non-discrimination on the grounds covered by Article 13
of the EU Treaties, social
inclusion and accessibility for
disabled persons.

affecting the Member States

R e a son

Non-discrimination and social inclusion are important commitments and goal of the European Community
and must be explicitly recognised in the objectives for the strategic guidelines.

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20.9.2005

CHAPTER II

Reserves

Recommendation 22

Article 48

Text proposed by the Commission

CoR amendment

1. Within the context of the annual debate referred to
in Article 29, the Council shall in 2011, in accordance
with the procedure laid down in Article 161 of the Treaty,
allocate the reserve referred to in Article 20 among the
Member States to reward progress made as compared with
the initial situation:
a) for the ‘Convergence’ objective, on the basis of the

in 2011,

Within the context of the annual debate referred to
1.
in accordance
in Article 29, the Council shall
with the procedure laid down in Article 161 of the Treaty,
allocate the reserve referred to in Article 20 among the
Member States to reward progress made as compared with
the initial situation:
a) for the ‘Convergence’ objective, on the basis of the

following criteria:
i) growth in the per capita gross domestic product
measured at NUTS II level, in relation to the Com-
munity average, on the basis of the data available
for the 2004-2010 period;

ii) growth in the employment rate at NUTS II level, on
the basis of the data available for the 2004-2010
period;

b) for the ‘Regional competitiveness and employment’

objective, on the basis of the following criteria:
i) pro rata to those regions having spent between
2007 and 2010 at least 50% of their ERDF alloca-
tion on innovation-related activities as referred to in
Article 5(1) of Regulation (EC) No […];

ii) growth in the employment rate at NUTS II level, on
the basis of the data available for the 2004-2010
period.
2.
Each Member State shall allocate the amounts
concerned among operational programmes taking into
account the criteria referred to in the previous paragraph.

following criteria:

i) growth in the per capita gross domestic product
measured at NUTS II level, in relation to the Com-
munity average, on the basis of the data available
for the 2004-2010 period;

ii) growth in the employment rate at NUTS II level, on
the basis of the data available for the 2004-2010
period;

b)

for the ‘Regional competitiveness and employment’

objective, on the basis of the following criteria:

i) pro rata to those regions having spent between
2007 and 2010 at least 50% of their ERDF alloca-
tion on innovation-related activities as referred to in
Article 5(1) of Regulation (EC) No […];

Each Member State,

ii) growth in the employment rate at NUTS II level, on
the basis of the data available for the 2004-2010
period.
2.
Each Member State shall allocate the amounts
concerned among operational programmes taking into
account the criteria referred to in the previous paragraph.
1.
in close consultation with the
Commission, shall assess under each objective and not
later than 31 December 2010 the performance of each of
their operational programmes on the basis of a limited
number of monitoring indicators reflecting effectiveness,
management and financial implementation and measuring
themed-term results in relation to their specific initial
targets.
These indicators shall be decided by the Member State in
close consultation with the Commission considering the
indications given by regional authorities taking account of
all or part of an indicative list of indicators proposed by
the Commission and shall be quantified in the existing
implementation reports as well as the
different annual
mid-term evaluation report. The Member States shall be
responsible for their application.
2.
At mid-term and not later than 31 March 2011, the
Commission shall allocate, in close consultation with the
Member States concerned, under each objective, on the
basis of proposals from each Member State, taking account
of its specific institutional features and their corresponding
programming,
to the
operational programmes and their priorities which are
considered to be successful.

the commitment appropriations

R e a son

We consider that the Commission's proposal to change the ‘philosophy’ and the allocation of the reserve,
for quality and performance between the Member States, is not appropriate. We think that the reserve for
quality and performance should be allocated by the Member State, as it used to be done during the third
programming period (2000-2006).

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Recommendation 23

Article 49

Text proposed by the Commission

CoR amendment

National contingency reserve

National contingency reserve

competitiveness

1.
The Member State shall reserve an amount of 1% of
the Structural Fund annual contribution for the ‘Conver-
gence’ objective and 3% of the Structural Fund annual
‘Regional
contribution for
and
the
employment’ objective
to cover unforeseen local or
sectoral crises linked to economic and social restructuring
or to the consequences of trade opening.
This reserve assists the adaptability of
the concerned
workers and the economic diversification of the regions
concerned,
operational
complement
programmes.
2.
Each Member State proposes specific operational
programmes for the budgetary commitments covering the
entire period in order to respond to the crises referred to
in the previous paragraph.

the

to

as

a

competitiveness

The Member State shall reserve an amount of 1% of
1.
the Structural Fund annual contribution for the ‘Conver-
gence’ objective and 3% of the Structural Fund annual
‘Regional
contribution for
and
the
employment’ objective
to cover unforeseen local or
sectoral crises linked to economic and social restructuring
or to the consequences of trade opening.
This reserve assists the adaptability of
the concerned
workers and the economic diversification of the regions
concerned,
operational
complement
programmes.
2.
Each Member State proposes specific operational
programmes for the budgetary commitments covering the
entire period in order to respond to the crises referred to
in the previous paragraph.
Any modifications to the programme which may be neces-
sary shall be subject
to a simplified and speeded-up
approval procedure.

the

to

as

a

R e a son

A significantly simplified and speeded-up programme modification procedure is essential
respond quickly.

in order to

TITLE V

FINANCIAL CONTRIBUTION BY THE FUNDS

CHAPTER 1

Contribution of the funds

Recommendation 24

Article 50, point d)

Text proposed by the Commission

CoR amendment

the rate of mobilisation of private financing, in par-
in the fields

d)
ticular under public-private partnerships,
concerned.

the rate of mobilisation of private financing, in par-
in the fields

d)
ticular under public-private partnerships,
concerned.

R e a son

The term ‘rate’ refers to something countable. The following articles of the chapter (51-53) do not define
anything about that, such as the methods of measuring it, the upper ceilings etc.

Recommendation 25

Article 51, paragraph 2

Text proposed by the Commission

CoR amendment

The contribution from the Funds shall be calculated in
relation to the total public expenditure.

The contribution from the Funds shall be calculated in
relation to the total public and private expenditure.

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R e a son

The CoR is concerned about establishing the rate of Community cofinancing in relation to the total public
expenditure, as this might discourage private sector participation in programmes. Therefore, it proposes to
calculate the contribution from the Funds in relation to the total national expenditure, as an essential tool
to reinforce private-public partnerships.

Recommendation 26

Article 51, paragraph 3

Text proposed by the Commission

CoR amendment

The contribution from the Funds for each priority shall be
subject to the following ceilings:
a) 85% of

the public expenditure co-financed by the

The contribution from the Funds for each priority shall be
subject to the following ceilings:
a) 85% of the public and private expenditure co-financed

Cohesion Fund;

by the Cohesion Fund;

b) 75% of the public expenditure co-financed by the ERDF
or the ESF under operational programmes in regions
eligible under the ‘Convergence’ objective;

c) 50% of the public expenditure co-financed by the ERDF
or the ESF under operational programmes under the
‘Regional competitiveness and employment’ objective;
d) 75% of the public expenditure co-financed by the ERDF
under operational programmes under the ‘European
territorial cooperation’ objective;

e) the co-financing rate for specific measures financed
under
the outermost
regions provided for in Article 5(4) shall be 50% of the
public expenditure.

the additional allocation for

b) 75% of the public and private expenditure co-financed
by the ERDF or the ESF under operational programmes
in regions eligible under the ‘Convergence’ objective;
c) 50% of the public and private expenditure co-financed
by the ERDF or the ESF under operational programmes
under the ‘Regional competitiveness and employment’
objective;

d) 75% of the public and private expenditure co-financed
by the ERDF under operational programmes under the
‘European territorial cooperation’ objective;

e) the co-financing rate for specific measures financed
the outermost
under
regions provided for in Article 5(4) shall be 50% of the
public and private expenditure.

the additional allocation for

R e a son

In the context of the Third Cohesion Report, issued in February 2004, the European Commission was still
in favour of private co-financing. Now the draft regulation provides for co-financing with public funds
only. In contrast to the current funding period, practicable private co-financing resources could no longer
be used in the funding of EU projects if the regulation were to be adopted.

Private co-responsibility should be brought into play instead of being totally excluded. Such a rule would
first and foremost affect broad areas of preventive labour market policy and contribute to a situation
where measures of this kind are no longer undertaken to the present extent. This sector in particular is
characterised by a particularly high level of innovation and a variety of public-private partnerships.

Recommendation 27

Article 51 paragraph 4

Text proposed by the Commission

CoR amendment

4.
The maximum contribution from the Funds shall be
increased to 85% of public expenditure for operational
programmes under the ‘Convergence’ and the ‘Regional
competitiveness and employment’ objectives in the outer-
the
most regions and for operational programmes of
outlying Greek islands under the ‘Convergence’ objective.

4.
The maximum contribution from the Funds shall be
increased to 85% of public expenditure for operational
programmes under the ‘Convergence’ and the ‘Regional
competitiveness and employment’ objectives in the outer-
the
most regions and for operational programmes of
outlying Greek islands under
‘Convergence’ and
‘Regional competitiveness and employment’ objectives.

the

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R e a son

A large proportion of the Greek islands are covered by the ‘Regional competitiveness and employment’
objective, and it is therefore unjustifiable, counterproductive and unfair to exclude them.

TITLE VI

MANAGEMENT, MONITORING AND CONTROLS

CHAPTER I

Management and control systems

Recommendation 28

Article 58, paragraph 7 (new)

Text proposed by the Commission

CoR amendment

Subject

to Article 57(1)

7.
the tripartite agreements
between local and regional bodies, the Member State and
the Commission may be applied. This kind of agreement
may contribute to consolidate the partnership principle,
linking together local, regional, national and trans-national
elements.

R e a son

If all parties agrees it should be possible to strengthen the cooperation on all levels by tripartite agreements.
This should be part of the general regulation in order to stress the importance of the local and regional
involvement as well as the partnership, stated in Article 10.

TITLE VII

FINANCIAL MANAGEMENT

CHAPTER I

Financial management

SECTION 3

Pre-financing

Recommendation 29

Article 81 paragraph 1

Text proposed by the Commission

CoR amendment

to

an

from the

Following the Commission decision approving the
1.
contribution
operational
Funds
programme, a single pre-financing amount shall be paid
by the Commission to the body designated by the Member
State. This pre-financing amount shall represent 7% of the
contribution from the Structural Funds and 10.5% of the
contribution from the Cohesion Fund to that operational
programme. It may be spread over two financial years, in
accordance with the availability of budget funds.

1.
Following the Commission decision approving the
contribution from the Funds to an operational programme,
a single pre-financing amount
shall be paid by the
Commission to the body designated by the Member State.
This pre-financing amount shall represent 7% 10.5% of
the contribution from the Structural Funds and the Cohe-
sion Fund to that operational programme.
It may be
in accordance with the
spread over two financial years,
availability of budget
funds. Two-thirds shall be paid
during the first financial year and the remaining third shall
be paid during the second financial year.

R e a son

Increasing the proportion of the contribution not subject to automatic decommitment and splitting the
payment in this way are a response to the need for a more realistic expenditure pattern during the initial
years of a project's implementation; these measures are based on the arrangements already established in
respect of the Cohesion Fund.

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TITLE VIII

COMMITTEES

CHAPTER 1

ERDF, Cohesion Fund and Fund Coordination Committee

Recommendation 30

Article 104 (add new point)

Text proposed by the Commission

CoR amendment

1.
The Commission shall be assisted by the ERDF,
Cohesion Fund and Fund Coordination Committee (herein-
after: the ‘committee’).
2. Where reference is made to this paragraph, the advi-
sory procedure laid down in Article 3 of Decision
1999/468/EC shall apply, in compliance with Article 7(3)
thereof.
3. Where reference is made to this paragraph,
the
management procedure laid down in Article 4 of Decision
1999/468/EC shall apply, in compliance with Article 7(3)
thereof.
The period referred to in Article 4(3) of Decision
1999/468/EC is fixed at one month.
4.
5.
representative.

The committee shall draw up its rules of procedure.
The EIB and the EIF shall appoint a non-voting

1.
The Commission shall be assisted by the ERDF,
Cohesion Fund and Fund Coordination Committee (herein-
after: the ‘committee’).
2. Where reference is made to this paragraph, the advi-
sory procedure laid down in Article 3 of Decision
1999/468/EC shall apply, in compliance with Article 7(3)
thereof.
3. Where reference is made to this paragraph,
the
management procedure laid down in Article 4 of Decision
1999/468/EC shall apply, in compliance with Article 7(3)
thereof.
The period referred to in Article 4(3) of Decision
1999/468/EC is fixed at one month.
The committee shall draw up its rules of procedure.
4.
5.
The European Economic and Social Committee and
the Committee of the Regions shall each appoint one non-
voting representative.
6.
sentative.

The EIB and the EIF shall appoint a non-voting repre-

R e a son

The two Committees are commendatory parts of the European Union, so they should be clearly named
within the framework of close cooperation. The Committees' working framework referred to in this Article
should be further defined as it is in Regulation 1260/99, Articles 47 and 48. This is in conformity with the
partnership principle.

Brussels, 13 April 2005.

The President

of the Committee of the Regions

Peter STRAUB