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DRAFT REPORT (2023/2121(INI))

On cohesion policy 2014-2020 - implementation and outcomes in the Member States

REGI-PR-756089

Committee on Regional Development · Rapporteur: Andrey Novakov

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This draft report by the Committee on Regional Development takes stock of cohesion policy in 2014-2020 and sets out recommendations for its future. It finds that the main funds provided EUR 449 billion, that payments started late and were slow, and that absorption reached 77% at the end of 2022. The report credits cohesion policy with positive impacts across all Member States and with a major role in responding to the COVID-19 pandemic, the war in Ukraine and the energy crisis through CRII, CRII+, REACT-EU, CARE, FAST-CARE and SAFE. It calls for cohesion policy to remain the EU's main instrument for reducing disparities, under shared management, with a larger budget and a clear separation from other instruments. It asks for a stronger local focus: disaster prevention investments, a technical assistance programme for smaller municipalities, a higher share of ERDF for urban development, local cohesion boards, fiscal decentralisation and fewer Commission ad hoc initiatives.

Committee position. The rapporteur proposes that cohesion policy remain the EU's main instrument for reducing disparities, under shared management and with a larger budget, and focuses his recommendations on implementation at local level through local authorities, including municipalities.

Key points

  1. The report assesses the implementation and outcomes of the 2014-2020 cohesion policy funds: ERDF, Cohesion Fund, ESF and Youth Employment Initiative.
  2. It finds that cohesion policy investments have had positive impacts on regions, cities, rural, border and remote areas, and that every Member State has benefited.
  3. It notes that cohesion policy served as a crisis response tool through CRII, CRII+, REACT-EU, CARE, FAST-CARE and SAFE.
  4. It finds that payments started late and were slow, that absorption was 77% at the end of 2022, and that roughly one third of Member States are late absorbers.
  5. It notes that several programmes face decommitments, that payments for transition regions and under certain thematic objectives are slower, and that about 50% of REACT-EU funds have been paid out.
  6. It calls for cohesion policy to remain the EU's main instrument for reducing disparities, with a larger budget and a clear demarcation from other instruments.
  7. It asks that cohesion investments stay under shared management and that the cohesion budget not be used for new non-cohesion instruments.
  8. It calls for disaster prevention and preparedness investments through a dedicated policy objective, thematic concentration or an enabling condition.
  9. It calls for a technical assistance programme for smaller municipalities and cross-border and rural areas, with 100% EU financing for capacity-building.
  10. It calls for the share of national ERDF allocations for urban development to rise from 8% to 12%, co-programmed with local authorities.
  11. It calls for reduced thematic concentration requirements, allocations assessed on the basis of NUTS 3, and fewer but larger local projects.
  12. It calls for local cohesion boards with decision-making powers, more fiscal decentralisation towards municipalities, and limits on Commission ad hoc initiatives with a budgetary top-up for each new one.

Who is affected

  • Member States and their regional and local authorities, which manage and benefit from cohesion funds.
  • Smaller municipalities and cross-border and rural areas, which would receive a dedicated technical assistance programme.
  • Urban areas, which would receive a higher share of national ERDF allocations for urban development.
  • The Commission, which is asked to limit ad hoc initiatives and ensure a budgetary top-up for each new one.
  • The EIB Group, which is called on to increase its involvement in cohesion policy investments.

Figures and deadlines

  • EUR 449 billion provided by the ERDF, CF, ESF and YEI for 2014-2020.
  • 84% of the planned EUR 532 billion.
  • Absorption should reach 89% without REACT-EU funds.
  • 8% of payments by end 2016.
  • Absorption rate of 77% at the end of 2022, including REACT-EU.
  • About 50% of REACT-EU funds paid out to Member States to date.
  • Average payment rate in the EU of 86% as of November 2023.
  • Proposed increase of the national ERDF allocation for urban development from 8% to 12%.

Legal basis: Articles 174 and 349 of the Treaty on the Functioning of the European Union.