Member States set to block greening of next Cohesion Policy

Brussels -- Meeting today in the General Affairs Council, leaders of EU Member States have significantly watered down last year’s Commission proposal on greening the next Cohesion Policy 2014-2020 (1). Much of the power over how to spend EU regional funds is set to remain with national governments with only weak demands placed on the capitals over how to spend EU funds towards building a low-carbon European economy.

“The contents of the text approved today by the Council amount to an abandoning of the Cohesion Policy’s alignment to Europe 2020 objectives,” comments Markus Trilling, CEE Bankwatch Network EU funds coordinator. “As we have seen in the current budget period, this actually means that, particularly in Central and Eastern Europe, regional funds will likely continue to be poured into highways, airports and incinerators.” (2)
 
According to Bankwatch, some of the most problematic aspects of the Cohesion Policy legislation approved today in the Council are:

• the relativisation of the EU 2020 objectives (from the draft Cohesion Policy legislation proposed by the Commission in the summer of 2011) as a strategic direction for the spending of regional funds;
• the weakening of safeguards, including environmental conditions, on which the awarding of Cohesion moneys had been proposed to be conditioned;
• commitments by national governments related to the receiving of regional funds will be included in partnership agreements – not contracts, as proposed by the Commission – losing their legally binding nature and not requiring Commissions approval anymore in important areas such as the implementation of sustainable development principles;
• the demands of including civil society partners in decisions over the allocation of funds have been drastically weakened;
• the demands for clear targets and result indicators related to how the regional funds are used have been watered down;
• member states preserve a right to reject certain measures on the grounds of increased administrative burden, opening the door for certain transparency or environmental requirements to be left unimplemented at national level.

 
“If the next Cohesion Policy ends up in the form we have seen indicated during today’s Council, this means we are giving up the chance to transform the next Budget of the EU into a tool for decarbonising our economies, into an engine of sustainable development for our regions,” adds Trilling.
 
“We are calling on MS to assume their responsibility towards future generations and use EU regional development funds for the benefit and well-being of their citizens, which would clearly imply committing to European long-term targets on climate and resources and including stakeholders in the planning of investments priorities,” says Markus Trilling. “At the same time, the European Parliament should not allow member states to use EU funds for investments undermining European objectives and priorities.” (3)
 

For more information, contact:

Markus Trilling
EU Funds Coordinator
CEE Bankwatch Network
markus.trilling AT bankwatch.org

Notes for the editors:

 
(1)    See the Commission proposal at: http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm
 
and Bankwatch’s take on it at:
http://bankwatch.org/checklist-eu-cohesion-policy
and at:
http://bankwatch.org/publications/funding-europes-future-how-cohesion-po...
 
(2) See Bankwatch’s map of harmful projects financed with or considered for financing with EU       funds: http://bankwatch.org/bwmail/51/new-eu-funds-map-adds-calls-sustainable-e...
 
(3) The European Council and the European Parliament both need to amend and adopt the Commission proposal from last year in order to finalise the legislative framework for the next Cohesion Policy. These legislative steps are expected to finish in 2013 only.