Legislative Observatory
European Parliament
Please fill in this field to find a procedure

Structural Funds: increased payments for certain Member States

2011/0211(COD)

PURPOSE: to facilitate access to funding in the context of EU cohesion policy as a means of reducing the effects of the financial crisis on the real economy, the labour market and citizens.

LEGISLATIVE ACT: Regulation (EU) No 1311/2011 of the European Parliament and of the Council amending Council Regulation (EC) No 1083/2006 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability.

CONTENT: following an agreement reached with the European Parliament at first reading, the Council adopted a Regulation allowing the temporary raising of the rates of cofinancing for the Structural Funds and the Cohesion Fund for those Member States experiencing financial difficulties.

The global economic and financial crisis is affecting or is threatening to affect certain Member States with problems concerning their economic growth and financial stability, as well as a deterioration in their deficit and debt position. Pressure on national financial resources is increasing and further steps should be taken rapidly to alleviate that pressure through the maximal and optimal use of funding from the Structural Funds and the Cohesion Fund.

The new rules provide for an increase in the EU’s cofinancing rates of 10 percentage points above the usual cofinancing rates applicable to each priority axis.

These provisions apply to the six Member States more seriously affected by the crisis, which have benefited from financial assistance from the balance of payments mechanism for countries not part of the euro area (Romania, Latvia and Hungary) or the European Financial Stability Mechanism for members of the euro area (Portugal, Greece and Ireland).

A Member State seeking to benefit from the derogation shall submit a written request to the Commission supplying all the necessary information necessary to establish:

  • by means of data on its macroeconomic and fiscal situation, that no resources for the national counterpart are available;
  • that an increase of payments is necessary to safeguard the continued implementation of operational programmes;
  • that problems persist even if the maximum ceilings applicable to co-financing rates set out in Annex III are used;
  • which Council Decision or other relevant legal act allows the Member State to take advantage of the derogation.

The Commission shall verify whether the information submitted justifies granting a derogation. The Commission shall have 30 days from the date of submission of the request to raise an objection as to the correctness of the submitted information.

This Regulation is one of a group of three Regulations concerning the same six Member States and relating, on the one hand, to the European Fisheries Fund (EFF) and, on the other, the Agricultural Fund for Rural Development (EAFRD).

The new support measures will not increase the total amount of appropriations to the countries concerned. This means that these additional transfers do not involve any supplementary EU funding.

ENTRY INTO FORCE: 20/12/2011.

These measures may be applied retroactively with effect from 1 January 2010 but no later than 31 December 2013.