EU Cohesion Policy 2.0: A Fresh Spin on Regional Development
EU Shifts Focus towards Fresh Cohesion Goals, Allocates €16.1bn in Pre-Funding
Here's a lowdown on the new and improved EU cohesion policy, freshly baked for the 2021-2027 budget period!
Pivotal Changes to EU's Regional Development Game Plan
Get ready for some fresh faces in the EU's funding circles! The updated cohesion policy introduces a slew of sectors that could potentially receive support. Among them are defense industrial capacity, military mobility, water resilience, decarbonisation, and affordable housing. The emphasis is on fortifying European infrastructure, especially in regions near Russia, Belarus, and Ukraine. Additionally, we're seeing the green light for the Strategic Technologies for Europe Platform (STEP). But don't worry, this refresh doesn't bring in new coin—it's just reallocating existing resources earlier than planned. A whopping €16.1 billion is projected for pre-financing to be used by 2026.
Financial Jiu-Jitsu: Flexibility and Power Moves
To make these changes happen, a few financial maneuvers have been proposed. Member states can access 100% co-financing and a 30% pre-financing rate for targeted investments. If they redirect 15% of the funds, they could even qualify for a 9.5% fund payout. But MEPs think that's too much work, so they're suggesting lowering the threshold to 10%. These financial wizardries are designed to help countries react more swiftly to emerging needs while keeping the main cohesion goals in sight.
Expect More from European Infrastructure: Double-Duty Projects and Emergency Support
Improving European infrastructure is a key component of the updated proposal. The focus is on dual-use projects that serve both civilian and military functions and new definitions in the water sector, including irrigation and desalination systems. In the realm of housing, the spotlight is on sustainable construction and renovation efforts. Critical energy systems and civil emergency facilities may also get a targeted boost. These changes aim to boost both regional stability and emergency preparedness across the EU.
Fair Play: Limits and Guidelines for the New Funding Priorities
To maintain balance, some ground rules have been set. Defense and decarbonisation funding should favor less developed or transition regions. Larger businesses may only receive support if they hire local workers from the region. Local and regional authorities must approve any fund redirects to ensure transparency and regional needs are met. These conditions help preserve the original goals of the EU's cohesion policy while trying to close the gap between more and less developed EU areas.
Negotiations with the Council commence, Pending Confirmation
Projects flouting EU laws or values will be shown the door. The MEPs say 'let's get this show on the road' and have given the green light for talks with the Council, which will occur during the July plenary session. As long as no formal objections are raised during that session, the negotiations will move forward to finalize the updates before the funding cycle progresses further.
In a nutshell, the revised EU cohesion policy for 2021-2027 broadens the thematic scope, including defense, security, and sustainability priorities. Financial flexibility tools like full co-financing and flexible reallocations are introduced to make funding more efficient and responsive to EU's evolving requirements. Stay tuned as we watch this rousing reboot unfold!
- The updated EU cohesion policy, for the 2021-2027 budget period, now includes the defense industrial capacity as one of the sectors that could potentially receive support in the EU's funding circles, as part of strengthening European infrastructure.
- In the realm of policy-and-legislation, the emphasis is on limiting defense and decarbonisation funding to less developed or transition regions, and larger businesses may only receive support if they hire local workers from the region, to maintain balance in the new funding priorities.
- The general-news highlights the introduction of financial jiu-jitsu, as a part of the revised EU cohesion policy, which includes flexible reallocations, 100% co-financing, and a 30% pre-financing rate for targeted investments, with the aim of making funding more efficient and responsive to the EU's evolving requirements.
