On the proposal for a regulation of the European Parliament and of the Council establishing the European Fund for Regional Development including for European Territorial Cooperation (Interreg) and the Cohesion Fund as part of the Fund set out in Regulation (EU) [NRP] and establishing conditions for the implementation of the Union support to regional development from 2028 to 2034
REGI-PR-790942
Committee on Regional Development · Rapporteur: Pascal Arimont, Marcos Ros Sempere
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This is the rapporteur's draft report on the proposed regulation setting up the European Regional Development Fund (ERDF) and the Cohesion Fund for 2028 to 2034, including European Territorial Cooperation (Interreg).¶¶ It proposes amendments that set out the tasks and specific objectives of the two funds, their budgets and the share of ERDF money for each category of region.¶¶¶ It adds rules on partnership and multi-level governance, integrated territorial and urban development, rural development, social and affordable public housing, and place-based innovation.¶¶¶ It lays down the strands of Interreg, their geographical coverage, resources, co-financing rates, and rules on managing authorities, monitoring committees and payments.¶¶¶ It also adds a mid-term review, a Build Back Better reprogramming mechanism, and a template for the Interreg Plan chapter.¶¶¶
Committee position. The rapporteurs propose to amend the Commission proposal by adding objectives, budget figures, partnership and territorial development rules, Interreg provisions, a mid-term review and a chapter template.¶¶¶
Key points
- The regulation sets out the objectives and scope of support from the ERDF and the Cohesion Fund, linked to five general objectives in the NRP Regulation.¶
- It defines the tasks of the ERDF and the Cohesion Fund, including reducing disparities between regions and funding environment and transport network projects.¶
- It lists specific objectives for the funds, covering competitiveness and innovation, sustainability and connectivity, social cohesion, defence and security capabilities, and fundamental rights and democracy.¶¶¶
- The funds may also support administrative capacity, capacity of local actors, and cooperation between partners, including cross-border and macro-regional cooperation.¶
- It sets the ERDF financial envelope at EUR 248 370 000 000 and the Cohesion Fund at EUR 46 990 000 000 in current prices, with Cohesion Fund support for Member States below 90 % of average GNI per capita.¶
- ERDF resources are allocated as 72,9 % for less developed regions, 17,2 % for transition regions and 9,9 % for more developed regions.¶
- Member States must organise a partnership including regional and local authorities, economic and social partners, civil society and others, under multi-level governance and the European Code of Conduct on Partnership.¶
- Member States must allocate at least 10 % of ERDF and, where applicable, Cohesion Fund resources to rural development, and at least 10 % to sustainable social and affordable public housing.¶¶
- A Build Back Better mechanism lets Member States redirect ERDF resources to reconstruction after a recognised natural disaster, capped at the lower of 10 % of the programme allocation or the direct damage.¶
- Each Member State must review progress by 31 March 2031, the Commission must report by 30 September 2031, and Parliament must express its position within six months.¶
- Interreg covers cross-border, transnational, interregional and outermost regions' cooperation, with a financial envelope of EUR 11 570 000 000 split across the four strands.¶¶¶
- Co-financing rates are set at up to 80 % for Interreg chapters and up to 85 % for outermost regions' cooperation, with a national contribution of at least 20 %.¶
Who is affected
- Member States and their regions, which must set up partnerships, allocate minimum shares to rural development and housing, and carry out a mid-term review.¶¶¶
- Managing authorities of Interreg Plan chapters, which prepare and negotiate chapters and submit payment applications.¶¶¶
- Non-Member States and partner countries participating in Interreg cooperation, which may need financing or implementing agreements.¶¶
- Beneficiaries of building renovation support, who must repay support if a building is sold or converted within 10 years.¶
- Urban authorities and cities, which may take part in the European Urban Initiative and URBACT.¶¶
Figures and deadlines
- EUR 248 370 000 000 in current prices — the financial envelope of the ERDF.¶
- EUR 46 990 000 000 in current prices — the financial envelope of the Cohesion Fund.
- 90 % of the EU average GNI per capita — the threshold for Cohesion Fund allocations.
- 72,9 % for less developed regions, 17,2 % for transition regions and 9,9 % for more developed regions — the split of ERDF resources by category of region.¶
- At least 10 % of ERDF and, where applicable, Cohesion Fund resources — the minimum allocation to rural development.¶
- At least 10 % of ERDF and, where applicable, Cohesion Fund resources — the minimum allocation to sustainable social and affordable public housing.¶
- EUR 11 570 000 000 in current prices — the financial envelope for the Interreg Plan.¶
- 72,2 % (EUR 8 353 540 000), 18,2 % (EUR 2 105 740 000), 6,1 % (EUR 705 770 000) and 3,5 % (EUR 404 950 000) — the shares for Interreg strands A, B, C and D.
Legal basis: Article 294(2) and Articles 177, 178 and 349 of the Treaty on the Functioning of the European Union.¶