Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the Cohesion Fund and repealing Council Regulation (EC) No 1084/2006
Date: 2011-10-06
Institutions: European Commission
Subjects: Cohesion Fund, EU environmental policy, climate change, common transport policy, project of common interest, renewable energy, sustainable development, sustainable mobility, trans-European network

EUROPEAN COMMISSION 

Brussels, 6.10.2011 
COM(2011) 612 final 

2011/0274 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the Cohesion Fund and repealing Council Regulation (EC) No 1084/2006 

{SEC(2011)1138 final} 
{SEC(2011)1139 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On  29  June  2011,  the  Commission  adopted  a  proposal  for  the  next  multi-annual  financial 
framework for the period 2014-2020: a budget for delivering the Europe 2020 strategy. In its 
proposal, the Commission decided that cohesion policy should remain an essential element of 
the  next  financial  package  and  underlined  its  pivotal  role  in  delivering  the  Europe  2020 
strategy.  

The  Commission  therefore  proposed  a  number  of  important  changes  to  the  way  cohesion 
policy is designed and implemented. Concentrating funding on a smaller number of priorities 
better  linked  to  the  Europe  2020  Strategy,  focusing  on  results,  monitoring  progress  towards 
agreed  objectives,  increasing  the  use  of  conditionalities  and  simplifying  the  delivery  are 
among the major hallmarks of the proposal. 

This  Regulation  sets  out  the  provisions  governing  the  Cohesion  Fund,  and  repealing 
Regulation (EC) No 1084/2006. It draws on the work undertaken since the publication of the 
Fourth  Cohesion  Report  in  May  2007  which  outlined  the  main  challenges  facing  regions  in 
the  next  decades  and  launched  the  debate  on  the  future  cohesion  policy.  On  9  November 
2010,  the  Commission  adopted  the  Fifth  Cohesion  Report  which  provided  an  analysis  of 
social and economic trends and outlined orientations for the future cohesion policy.  

Cohesion policy is an important expression of solidarity with the poorer and weakest regions 
of  the  EU  –  but  it  is  more  than  that.  One  of  the  greatest  successes  of  the  EU  has  been  its 
capacity  to  raise  living  standards  for  all  its  citizens.  It  does  this  not  only  by  helping  poorer 
Member States and regions to develop and grow but also through its role in the integration of 
the Single Market whose size delivers markets and economies of scale to all parts of the EU, 
rich and poor, big and small. The Commission's evaluation of past cohesion policy spending 
has  shown  many  examples  of  added  value  and  of  growth  and  job  creating  investment  that 
could  not  have  happened  without  the  support  of  the  EU  budget.  However,  the  results  also 
show  the  effects  of  dispersion  and  lack  of  prioritisation.  At  a  time  when  public  money  is 
scarce and when growth enhancing investment is more needed than ever, the Commission has 
decided to propose important changes to cohesion policy. 

The Cohesion Fund helps Member States whose GNI per inhabitant is less than 90% of the EU27 
average  in  making  investments  in  TEN-T  transport  networks  and  the  environment.  Part  of  the 
Cohesion  Fund  allocation  (€10  billion)  will  be  ring-fenced  to  finance  core  transport  networks 
under the "Connecting Europe" Facility. The Cohesion Fund can also support projects related to 
energy,  as  long  as  they  clearly  present  a  benefit  to  the  environment,  for  example  by  promoting 
energy efficiency and the use of renewable energy. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

2.1. Consultation and expert advice 

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Results of the public consultations of 5th Progress Report on Economic and Social Cohesion; 
the  EU  Budget  Review1,  the  proposals  for  the  multi-annual  financial  framework2,  the  Fifth 
Cohesion  Report3  and  consultations  following  the  adoption  of  the  report  have  all  been 
considered when making the proposals.  

The  public  consultation  on  the  Conclusions  of  the  Fifth  Cohesion  Report  was  held  between 
12 November  2010  and  31  January  2011.  A  total  of  444  contributions  were  received. 
Respondents  included  Member  States,  regional  and  local  authorities,  social  partners, 
European 
interest  organisations,  non-governmental  organisations,  citizens  and  other 
stakeholders. The public consultation asked a series of questions about the future of cohesion 
policy. A summary of the results was published on 13 May 20114.  

A  public  consultation  was  also  held  on  the  future  Trans-European  Transport  Network  from 
4 May 2010 to 15 September 2010. The majority of stakeholders, especially at Member State 
and  regional  level,  support  better  coordination  between  different  financial  instruments  that 
fund TEN-T at EU level, namely cohesion policy, research and innovation funding, the TEN-
T programme and the EIB's interventions.  

The results of the ex-post evaluations carried out on the 2000-2006 programmes; and a broad 
range  of  studies  and  expert  advice  were  used  as  input.  Expert  advice  was  also  provided 
through  the  High  Level  Group  reflecting  on  future  Cohesion  Policy,  composed  of  experts 
from national administrations, with 10 meetings held between 2009 and 2011. 

2.2. Impact assessment  

Options were assessed in particular in relation to the Cohesion Fund contribution to investing 
in  basic  infrastructure  in  transport  and  environment.  The  Cohesion  Fund  is  aimed  at 
supporting projects in Trans-European transport networks in accordance with Articles 171 and 
177 of the Treaty on the Functioning of the European Union. 

Various  ways  of  making  funding  conditional  on  a  sound  macro-fiscal  framework  were 
assessed, including the status quo, with a weak ex-post conditionality which has never been 
applied, a strengthened ex post conditionality, and ex ante conditionality, which would require 
the fulfilment of preconditions before the adoption of the programmes.  

An  evolution  of  the  current  system  best  fulfils  the  criteria  of  ownership,  transparency  and 
predictability,  while  at  the  same  time  ensuring  that  the  effectiveness  of  growth-enhancing 
investments  is  not  undermined  by  the  pursuit  of  unsound  fiscal  policies.  Such  a  procedure 
implies suspension of part or all of commitments in the case of repeated breaches, and allows 
some flexibility, but this is limited to exceptional economic circumstances. It also ensures full 
the  Cohesion 
alignment  between 
fund/Structural Funds and the new rules of budgetary surveillance of the Stability and Growth 
Pact. 

the  provisions  for  macro-fiscal  conditionality  of 

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2 

3 
4 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee, the Committee of the Regions and the national parliaments: The EU 
Budget Review, COM(2010) 700 final, 19.10.2010. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions:  A  Budget  for  Europe  2020, 
COM(2011) 500 final, 29.6.2011. 
5th Report on Economic, Social and Territorial Cohesion, November 2010. 
Commission  Staff  Working  Paper:  Results  of  the  public  consultation  on  the  conclusions  of  the  fifth 
report on economic, social and territorial cohesion, SEC(2011) 590 final, 13.5.2011. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

European regional policy has an important role to play in mobilising local assets and focusing 
on the development of endogenous potential.  

Article 174 of the Treaty on the Functioning of the European Union (TFEU) calls for action 
by the European Union to strengthen its economic, social and territorial cohesion and promote 
overall harmonious development by reducing disparities between the levels of development of 
regions and promoting development in least favoured regions. 

The  TFEU  states  that  the  Cohesion  Fund  shall  be  set  up  with  the  aim  of  contributing  to 
projects  in  the  fields  of  environment  and  trans-European  networks  in  the  area  of  transport 
infrastructure.  Article  192  of  the  TFEU  also  refers  to  the  use  of  the  Cohesion  Fund  for 
environment  in  cases  where  the  polluter  pays  principle  cannot  be  applied  due  to 
disproportionate  costs  for  the  public  authorities  of  a  Member  State.  Protocol  No  28  to  the 
TFEU states that the Cohesion Fund will provide support to projects in Member States with a 
per capita GNI of less than 90% of the Union average. 

The timing of the review of EU funding to promote cohesion is linked to the proposal for a 
new Multiannual Financial Framework, as contained in the Commission Work Programme. 

As  the  EU  Budget  Review  has  highlighted,  the  "EU  budget  should  be  used  to  finance  EU 
public goods, actions that Member States and regions cannot finance themselves, or where it 
can secure better results".5 The legal proposal will respect the principle of subsidiarity as the 
tasks of the ERDF are set out in the Treaty and the policy is implemented in accordance with 
the principle of shared management and respecting the institutional competencies of Member 
States and regions.  

The  legislative  instrument,  and  the  type  of  measure  (i.e.  funding)  are  both  defined  in  the 
TFEU, which provides the legal basis for the Cohesion Fund, and states that the tasks, priority 
objectives and the organisation of the fund shall be defined in regulations. 

4. 

BUDGETARY IMPLICATION 

The Commission's proposal for a Multi-Annual Financial Framework includes a proposal of 
EUR 376 billion for the period 2014-2020.  

Proposed budget 2014-2020 

EUR billion  

Convergence regions  

Transition regions  

Competitiveness regions  

Territorial cooperation  

Cohesion fund  

Extra  allocation  for  outermost  and  sparsely  populated 
regions  

Connecting  Europe  Facility  for  transport,  energy  and 
ICT  

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COM(2010) 700 final, 19.10.2010. 

162,6 

39 

53,1 

11,7 

68,7 

0,926 

EUR  40  billion  (with  an  additional 
EUR 10 billion ring fenced inside the 
Cohesion Fund) 

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*All figures in constant 2011 prices 

5. 

SUMMARY OF CONTENT OF THE PROPOSED REGULATION 

The  proposed  Regulation  determines  the  scope  of  intervention  of  the  Cohesion  Fund.  It 
includes  an  article  on  scope  defining  the  general  areas  for  intervention  within  the  area  of 
transport  and  environment.  The  scope  of  intervention  is  also  defined  by  a  negative  list  of 
activities which will not be eligible for support, and a list of investment priorities. 

In  the  field  of  environment,  the  Cohesion  Fund  will  support  investment  in  climate  change 
adaptation  and  risk  prevention,  investment  in  the  water  and  waste  sectors  and  the  urban 
environment.  In  line  with  the  Commission's  proposals  on  the  Multi-Annual  Financial 
Framework,  investment  in  energy  is  also  eligible  for  support,  provided  it  has  positive 
environmental benefits. Therefore investment in energy efficiency and renewable energy are 
also supported. 

In  the  field  of  transport  the  Cohesion  Fund  will  contribute  to  investments  in  the  Trans-
European Transport Network, as well as low-carbon transport systems and urban transport. 

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2011/0274 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the Cohesion Fund and repealing Council Regulation (EC) No 1084/2006 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
second subparagraph of Article 177 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee6, 

Having regard to the opinion of the Committee of the Regions7, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

Article 174 of the Treaty provides that the Union should develop and pursue its actions 
leading  to  the  strengthening  of  its  economic,  social  and  territorial  cohesion.  The 
Cohesion Fund should therefore provide a financial contribution to projects in the field 
of  the  environment  and  to  trans-European  networks  in  the  area  of  transport 
infrastructure. 

Regulation  (EU)  No  […]/2012  of  […]  laying  down  common  provisions  on  the 
European Regional Development Fund, the European Social Fund, the Cohesion Fund, 
the  European  Agricultural  Fund  for  Rural  Development  and  the  European  Maritime 
and  Fisheries  Fund  covered  by  the  Common  Strategic  Framework  and  laying  down 
general provisions on the European Regional Development Fund, the European Social 
Fund and the Cohesion Fund and repealing Regulation (EC) No 1083/20068 [Common 
Provisions  Regulation  -  CPR]  establishes  a  new  framework  for  the  action  of  the 
Structural Funds and the Cohesion Fund. It is necessary to specify the objectives of the 
Cohesion  Fund  in  relation  to  the  new  framework  for  its  action  and  in  relation  to  the 
purpose assigned to it in the Treaty. 

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OJ C , , p. . 
OJ C , , p. . 
OJ L , , p. . 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

The  Union  may,  through  the  Cohesion  Fund,  contribute  to  actions  in  pursuit  of  the 
Union's environmental objectives specified in Articles 11 and 191 of the Treaty. 

Trans-European  transport  network  projects  financed  by  the  Cohesion  Fund  are  to 
comply  with  the  guidelines  adopted  by  Decision  No  661/2010/EU  of  the  European 
Parliament and of the Council of 7 July 2010 on Union guidelines for the development 
of  the  trans-European  transport  network9.  In  order  to  concentrate  efforts,  priority 
should be given to projects of common interest as defined in that Decision. 

Specific  provisions  concerning  the  type  of  activities  which  may  be  supported  by  the 
Cohesion  Fund  under  the  thematic  objectives  defined  in  Regulation  (EU)  No 
[…]/2012 [CPR] should be laid down. At the same time, expenditure outside the scope 
of  the  Cohesion  Fund  should  be  defined  and  clarified,  including  as  regards  the 
reduction  of  greenhouse  gas  emissions  in  installations  falling  under  Directive 
2003/87/EC  of  the  European  Parliament  and  of  the  Council  of  13  October  2003 
establishing  a  scheme  for  greenhouse  gas  emission  allowance  trading  within  the 
Community and amending Council Directive 96/61/EC10. 

In  order  to  address  the  specific  needs  of  the  Cohesion  Fund,  and  in  line  with  the 
Europe  2020  strategy  that  cohesion  policy  should  support  the  need  to  deliver  smart, 
sustainable  and  inclusive  growth11,  it  is  necessary  to  set  out  investment  priorities 
within  the  scope  of  the  thematic  objectives  laid  down  in  Regulation  (EU)  No 
[…]/2012 [CPR]. 

A common set of indicators to assess progress of programme implementation should 
be  set  out  before  the  Member  States  draft  their  operational  programmes.  These 
indicators should be complemented by programme-specific indicators. 

This  Regulation  replaces  Council  Regulation  (EC)  No  1084/2006  of  11  July  2006 
establishing  the  Cohesion  Fund  and  repealing  Regulation  (EC)  No  1164/9412.  In  the 
interest of clarity, Regulation (EC) No 1084/2006 should therefore be repealed,  

HAVE ADOPTED THIS REGULATION: 

Article 1 
Subject-matter 

This Regulation establishes the tasks of the Cohesion Fund and the scope of its support with 
regard to the Investment for growth and jobs goal referred to in Article 81 of Regulation (EU) 
No [ ]/2012 [CPR]. 

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OJ L 204, 5.8.2010, p. 1. 
OJ L 275, 25.10.2003, p. 32. 
Communication  from  the  Commission:  Europe  2020  - A strategy  for  smart,  sustainable  and  inclusive 
growth, COM(2010) 2020 final, 3.3.2010. 
OJ L 210, 31.7.2006, p. 79. 

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Article 2 
Scope of support from the Cohesion Fund 

1. 

The Cohesion Fund shall, while ensuring an appropriate balance and according to the 
investment and infrastructure needs specific to each Member State, support: 

(a) 

(b) 

investments  in  the  environment,  including  areas  related  to  sustainable 
development and energy which present environmental benefits; 

trans-European networks in the area of transport infrastructure, in compliance 
with the guidelines adopted by Decision No 661/2010/EU; 

(c) 

technical assistance. 

2. 

The Cohesion Fund shall not support: 

(a) 

the decommissioning of nuclear power stations; 

(b) 

the  reduction  of  greenhouse  gas  emissions  in  installations  falling  under 
Directive 2003/87/EC; 

(c)  housing. 

Article 3 
Investment priorities 

In  accordance  with  Article  16  of  Regulation  (EU)  No  […]/2012  [CPR],  the  Cohesion  Fund 
shall  support  the  following  investment  priorities  within  the  thematic  objectives  set  out  in 
Article 9 of Regulation (EU) No […]/2012 [CPR]: 

(a) 

supporting the shift towards a low-carbon economy in all sectors by: 

(i) 

promoting the production and distribution of renewable energy sources; 

(ii)  promoting energy efficiency and renewable energy use in small and medium-

sized enterprises; 

(iii)  supporting  energy  efficiency  and 

renewable  energy  use 

in  public 

infrastructures; 

(iv)  developing smart distribution systems at low voltage levels ; 

(v)  promoting low-carbon strategies for urban areas; 

(b) 

promoting climate change adaptation, risk prevention and management by: 

(i) 

supporting dedicated investment for adaptation to climate change; 

(ii)  promoting investment to address specific risks, ensuring disaster resilience and 

developing disaster management systems; 

(c) 

protecting the environment and promoting resource efficiency by: 

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(i) 

addressing the significant needs for investment in the waste sector to meet the 
requirements of the Union's environmental acquis; 

(ii) 

addressing the significant needs for investment in the water sector to meet the 
requirements of the Union's environmental acquis; 

(iii)  protecting and restoring biodiversity, including through green infrastructures; 

(iv) 

improving  the  urban  environment,  including  regeneration  of  brownfield  sites 
and reduction of air pollution. 

(d) 

promoting  sustainable 
infrastructures, by: 

transport  and  removing  bottlenecks 

in  key  network 

(i) 

supporting a multi-modal Single European Transport Area by investing in the 
Trans-European Transport Network; 

(ii)  developing  environment-friendly  and  low-carbon  transport  systems  including 

promoting sustainable urban mobility; 

(iii)  developing comprehensive, high quality and interoperable railway systems; 

(e) 

enhancing 
institutional  capacity  and  an  efficient  public  administration  by 
strengthening  of  institutional  capacity  and  the  efficiency  of  public  administrations 
and public services related to implementation of the Cohesion Fund. 

Article 4 
Indicators 

1. 

2. 

3. 

1. 

Common indicators, as set out in the Annex to this Regulation, shall be used where 
relevant  and  in  accordance  with  Article  24(3)  of  Regulation  (EU)  No  […]/2012 
[CPR]. For common indicators, baselines shall be set at zero and cumulative targets 
shall be set for 2022. 

For  programme-specific  output  indicators,  baselines  shall  be  set  at  zero  and 
cumulative targets shall be fixed for 2022. 

For programme-specific result indicators, baselines shall use the latest available data 
and  targets  shall  be  fixed  for  2022,  but  may  be  expressed  in  quantitative  or 
qualitative terms. 

Article 5 
Transitional provisions 

This Regulation shall not affect either the continuation or modification, including the 
total or partial cancellation, of assistance approved by the Commission on the basis 
of Regulation (EC) No 1084/2006 or any other legislation applying to that assistance 
on 31 December 2013, which shall consequently apply thereafter to that assistance or 
the projects concerned until their closure. 

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2. 

Applications to receive assistance made under Regulation (EC) No 1084/2006 shall 
remain valid. 

Article 6 
Repeal 

Regulation (EC) No 1084/2006 is hereby repealed.  

References to the repealed Regulation shall be construed as references to this Regulation. 

Article 7 
Review 

The European Parliament and the Council shall review this Regulation by 31 December 2022, 
in accordance with Article 177 of the Treaty. 

Article 8 
Entry into force 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX  

List of Common Indicators for the Cohesion Fund 

UNIT 

NAME 

Environment 

Solid waste 

tons 

Additional waste recycling capacity 

Water supply 

persons 

Additional population served by improved water 
supply 

m3 

Estimated reduction of leakage in water distribution 
network 

Wastewater 
treatment 

population 
equivalent 

Additional population served by improved 
wastewater treatment 

Risk 
prevention and 
management 

persons 

persons 

Population benefiting from flood protection 
measures 

Population benefiting from forest fire protection and 
other protection measures 

Land 
rehabilitation 

hectares 

Total surface area of rehabilitated land 

Soil sealing 

hectares 

Change in land sealed due to development 

hectares 

Surface area of habitats in better conservation status 

Nature and 
biodiversity 

Energy and 
climate 
change 

Renewables 

MW 

Additional capacity of renewable energy production 

Energy 
efficiency 

households 

Number of households with improved energy 
consumption classification 

kWh/year 

Decrease of primary energy consumption of public 
buildings 

users 

Number of additional energy users connected to 
smart grids 

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GHG 
reduction 

Transport 

Railway 

Roads 

Urban 
transport 

Inland 
waterways 

tons of CO2eq 

Estimated decrease of GHG in CO2 equivalents 

km 

km 

km 

km 

Total length of new railway line 

Total length of reconstructed or upgraded railway 
line 

Total length of newly built roads 

Total length of reconstructed or upgraded roads 

passenger trips 

Increase of passenger trips using supported urban 
transport service 

tonne-km 

Increase of cargo transported on improved inland 
waterways 

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