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BUDGETARY ASSESSMENT (COM(2024)0496 – C100147/2024 – 2024/0275(COD))

On the proposal for a regulation of the European Parliament and of the Council RESTORE - Regional Emergency Support to Reconstruction amending Regulation (EU) 2021/1058 and Regulation (EU) 2021/1057

BUDG-AD-765338

Committee on Budgets · Rapporteur: Sandra Gómez López

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The Committee on Budgets gives a budgetary assessment of the RESTORE proposal, which amends cohesion policy rules to help member states respond to natural disasters. It finds the proposal budget-neutral but notes inconsistencies in payment figures and calls for better information and monitoring.

Committee position. The Committee on Budgets concludes that the proposal is compatible with Rule 58(3) of the Rules of Procedure, but raises concerns and requests further information and monitoring.

Key points

  1. The proposal does not change existing budgetary commitments and stays within 2021-2027 allocations, making it budget-neutral.
  2. The combined effect of 30% pre-financing, 100% co-financing, and eligibility from 1 January 2024 causes partial frontloading of payments, with lower payments later.
  3. The budgetary impact was not in the 2025 draft budget, but the amending letter adds EUR 3 000 million in payment appropriations for the ERDF.
  4. Regrets that cohesion policy is used as an emergency tool, risking long-term objectives, but sees the proposal as pragmatic; calls for more flexibility in CPR, ERDF, CF, and ESF+ rules.
  5. Notes inconsistencies between the amending letter and the Legislative Financial Statement; urges the Commission to provide consistent information and rectify where needed.
  6. Expects the Commission to update payment needs in the 2026 draft budget and to assist member states in reprogramming ERDF and ESF+ resources quickly.
  7. Requests timely reports from the Commission on transfers under Article 26 of Regulation (EU) 2021/1060 and payment forecasts to make RESTORE's impact identifiable.
  8. Notes high RAL for Heading 2a (EUR 154 864 million) and asks for analysis of RESTORE's impact on the European Union Recovery Instrument.
  9. Calls on the Commission to monitor payment evolution and propose remedial action if needed, as frontloading could ease pressure on payment ceilings.
  10. Underlines that reprogramming could reduce climate spending and regrets lack of impact assessment; welcomes commitment to building back better.
  11. Fears that frequent disasters and broad definitions could lead to higher payment needs than estimated.
  12. Calls on member states and the Commission to prevent double financing and ensure RESTORE support is additional to other Union programmes, including the EUSF.

Who is affected

  • Member states affected by natural disasters, who can use RESTORE support for cohesion policy programmes.
  • The Commission, which must provide consistent information, assist reprogramming, and monitor payments.

Figures and deadlines

  • EUR 3 000 million in additional payment appropriations for the ERDF in the amending letter to the 2025 budget.
  • EUR 3 000 million estimated payment needs in 2025, with EUR 2 070 million for ERDF and EUR 930 million for ESF+.
  • EUR 154 864 million RAL for Heading 2a at end of 2023.