Common provisions on European Regional Development Fund, European Social Fund Plus, Cohesion Fund, and European Maritime and Fisheries Fund and financial rules for those and for Asylum and Migration Fund, Internal Security Fund and Border Management and Visa Instrument 2021–2027
The European Parliament adopted a legislative resolution approving the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund (ERDF), the European Social Fund Plus (ESF+), the Cohesion Fund, the Just Transition Fund (JTF) and the European Maritime, Fisheries and Aquaculture Fund (EMFAF) and financial rules for those and for the Asylum, Migration and Integration Fund (AMIF), the Internal Security Fund (ISF) and the Instrument for Financial Support for Border Management and Visa Policy (BMVI).
The Common Provisions Regulation (CPR) sets out, for the period 2021-2027, the financial rules for a range of funds under shared management which aim to help Member States strengthen their economic, social and territorial cohesion, reducing the gap between the levels of development of the various regions and the backwardness of the least favoured regions or islands.
Strategic objectives
The Common Provisions Regulation seeks to support 5 strategic objectives that reflect the main priorities of the EU:
1) a more competitive and smarter Europe by fostering smart and innovative economic transformation and regional connectivity to information and communication technologies (ICT);
2) a greener, more resilient and low-carbon Europe moving towards a carbon-free economy, by promoting a clean and fair energy transition, green and blue investments, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility
3) a more connected Europe through better mobility;
4) a more social and inclusive Europe implementing the European set of social rights;
5) a Europe closer to its citizens, by promoting sustainable and integrated development of all types of territories and local initiatives.
Actions supported
The ERDF, the ESF+, the Cohesion Fund and the Youth Forum should contribute to actions aimed at strengthening the economic, social and territorial cohesion of the Union in accordance with the following aims:
(a) ‘Investment for jobs and growth’ in the Member States and regions, an objective supported by the ERDF, the ESF+, the Cohesion Fund and the Youth Forum; and
(b) ‘European territorial cooperation’ (Interreg), an objective supported by the ERDF.
The multi-annual investment projects financed by the funds should cover a wide range including transport infrastructure, hospitals and healthcare, clean energy, water management, sustainable urban development, research, innovation and digital transition, as well as employment programmes, social inclusion, education and training.
Budget
The resources for economic, social and territorial cohesion available for budgetary commitments for the period 2021-2027 under the multiannual financial framework amount to EUR 330 234 776 621 in 2018 prices for the ERDF, ESF+ and the Cohesion Fund, and EUR 7 500 000 000 in 2018 prices for the JTF.
These resources should be complemented by an amount of EUR 10 000 000 000 from the EU Recovery Instrument to support recovery from the COVID-19 crisis for the purpose of the JTF Regulation.
Co-financing rates will be up to 85% for the least developed regions, the Cohesion Fund, the Just Transition Fund and up to 80% for Interreg.
Climate action
The regulation sets specific climate targets for the ERDF and the Cohesion Fund (30% and 37% respectively) and ensures monitoring of respect for climate action contribution targets and an adjustment mechanism. Projects should also have to comply with the ‘do no significant harm’ principle, in line with the EU's environmental objectives.
Transfers and contribution to InvestEU
Transfers may be made to any other instrument under direct and indirect management, up to 5% of the initial allocation. Transfers of up to 20% of the initial allocation (up to 25% in very specific circumstances) may be made between the ERDF, ESF+ and the Cohesion Fund.
Simplified rules, governance and monitoring
The new legislation simplifies the rules, reduces red tape and ensures a more efficient use of resources. The Partnership Agreement should be simplified for all Member States.
In order to strengthen the link between cohesion policy and the European Semester of economic policy coordination, Member States should for the first time in 2024 carry out a mid-term review of each programme supported by the ERDF, ESF+, Cohesion Fund and the Youth Forum. The aim of this review will be to make a full adjustment of the programmes according to their performance.
Access to cohesion policy resources should be conditional on compliance with the Charter of Fundamental Rights of the European Union and the UN Conventions on the Rights of the Child and the Rights of Persons with Disabilities. In addition, gender mainstreaming and gender integration should be taken into account and promoted throughout the preparation and implementation of programmes.
The legislation also provides for an effective monitoring mechanism for public procurement, as well as greater transparency, with Member States providing more detailed information on the beneficiaries of funding.
Lastly, a new provision empowers the Commission to adopt specific measures in case of the occurrence of unusual events, outside of the control of one or more Member States.