COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to Article 294(6) of the Treaty on the Functioning of the European Union concerning the position of the Council on the adoption of the European Regional Development Fund and Cohesion Fund Regulation
Date: 2021-06-03
Institutions: Directorate-General for Regional and Urban Policy, European Commission
Subjects: Cohesion Fund, EU regional policy, European Regional Development Fund, coronavirus disease, eligibility criteria, epidemic, less-favoured region, regional aid, regional development, regional disparity

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   EUROPEAN COMMISSION  Brussels, 3.6.2021  COM(2021) 283 final 2018/0197 (COD)  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT  pursuant to Article 294(6) of the Treaty on the Functioning of the European Union  concerning the position of the Council on the adoption of the European Regional Development Fund and Cohesion Fund Regulation  
 
 
2018/0197 (COD) 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT 

pursuant to Article 294(6) of the Treaty on the Functioning of the European Union 

concerning the 

position of the Council on the adoption of the European Regional Development Fund 
and Cohesion Fund Regulation 

1. 

BACKGROUND 

Date of transmission of the proposal to the European Parliament 
and to the Council  
(document COM(2018) 372 final - 2018/0197 (COD)): 

29 May 2018 

Date  of  the  opinion  of  the  European  Economic  and  Social 
Committee: 

17 October 2018 

Date of the opinion of the Committee of the Regions: 

5 December 2018 

Date of the position of the European Parliament, first reading: 

26 March 2019 

Date of transmission of the amended proposal 
(document COM(2020) 452 final - 2018/0197 (COD)): 

28 May 2020 

The European Economic and Social Committee was consulted and 
decided not to issue an opinion 

The  Committee  of  the  Regions  was  consulted  and  decided  not  to 
issue an opinion 

/ 

/ 

Date of adoption of the Council first reading position: 

27 May 2021 

2. 

OBJECTIVE OF THE PROPOSAL FROM THE COMMISSION 

The proposal from the Commission sets out the specific objectives and the scope of support 
from  the  European  Regional  Development  Fund  (‘ERDF’)  and  the  Cohesion  Fund  with  the 
view  of  their  contribution  to  the  overall  objective  of  strengthening  the  Union’s  economic, 
social  and  territorial  cohesion  enshrined  in  the  Treaty  on  the  Functioning  of  the  European 
Union.  

3. 

COMMENTS ON THE POSITION OF THE COUNCIL 

The Council position respects, with limited exceptions, the architecture of the regulation and 
eligibility  of  the  Funds  defined  under  the  specific  objectives  and  the  scope  of  support  as 
proposed by the Commission.  

The main modifications relate to: 

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possibility  to  fulfil  concentration  requirements  either  at  national  or  at  category  of 
regions level (increased flexibility);  

limited  relaxation  of  the  requirements  for  the  thematic  concentration  through  the 
following:  

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reduction of the applicable concentration thresholds for relatively less wealthy 
countries or regions (Member States with the gross national income ratio equal 
or  below  100%  of  the  EU  average  as  well  as  for  the  transition  and  the  less 
developed  regions);  on  the  other  hand,  for  the  more  developed  regions  and 
countries  a  minimum  requirement  for  policy  objective  2  (‘a  greener  Europe’) 
of 30% has been set up;  

counting  environment  and  climate-friendly  expenditure  under  the  Cohesion 
Fund towards the thematic concentration;  

exempting specific allocations for the outermost and sparsely populated areas 
from the concentration rules; 

shifting  ‘urban  mobility’  and  ‘digital  connectivity’  specific  objectives  from  policy 
objective 3 to policy objectives covered by thematic concentration (policy objectives 
2 and 1 respectively). The impact of such a shift has been mitigated by capping the 
maximum  allowed  contribution  from  those  sectors  to  the  thematic  concentration 
requirements.  

In  relation  to  the specific objectives, additional  emphasis  has been put  on the integration of 
third  country  nationals,  including  migrants  as  well  as  investment  in  culture  and  sustainable 
tourism.  

In  relation  to  areas  excluded  from  the  scope  of  support,  the  main  change  relates  to  the 
eligibility  of  support  to  fossil  fuel-related  investments,  through  a  very  limited  eligibility  of 
natural gas-related investments subject to certain conditions. Its impact has been mitigated by 
a restrictive definition of eligible investment,  the capping of resources that  may be used for 
supporting  such  investments  (at  less  than  1%  of  the  total  ERDF  and  Cohesion  Fund 
allocation) and time limitations. Some limited exceptions to the generally excluded areas have 
also  been  introduced,  upon  justification  i.e.  for  targeted  investment  in  airport  infrastructure, 
waste management. The exclusions on investments in the area of broadband and rolling stock 
were eliminated - for these, the corresponding conditions under State aid rules will continue to 
apply in their entirety.  

A  reference  to  the  Stability  and  Growth  Pact  has  been  introduced.  The  Commission’s 
implementing  powers  that  could  be  triggered  in  exceptional  circumstances  have  been 
restricted. 

The Treaty objectives of the Funds and their contribution to social, economic and territorial 
cohesion  have  been  emphasised  and  the  importance  of  disadvantaged  areas,  including  rural 
areas and areas with natural or demographic handicaps has been stressed. In this latter respect, 
a dedicated provision has been introduced, providing for the opportunity to devote resources 
for disadvantaged areas in the partnership agreements prepared by Member States.  

The  urban  dimension  has  been  reinforced,  by  raising  the  earmarking  requirement  for 
sustainable urban development actions from 6% to 8% of national ERDF resources under the 
Investment for jobs and growth goal.  

Furthermore,  the  new  component  of  ‘Interregional  Innovation  Investments’  has  been 
transferred  from  the  Interreg  regulation  to  the  ERDF  and  Cohesion  Fund  regulation  and  its 

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management mode was clarified. 

4. 

CONCLUSION 

The  Council  position  presents  a  balanced  compromise  that  respects  the  equilibrium  and  the 
objectives of the Commission proposal.  

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