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EUROCITIES webinar on the state of play of cohesion policy Overview of developments in Q1 2019

EUROCITIES webinar on the state of play of cohesion policy Overview of developments in Q1 2019. Guest speaker : Katarzyna Devavry, MEP advisor, European Parliament Moderator : Helena Polomik, policy advisor, EUROCITIES 6 May 2019. Overview of the webinar.

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EUROCITIES webinar on the state of play of cohesion policy Overview of developments in Q1 2019

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  1. EUROCITIES webinar on the state of play of cohesion policyOverview of developments in Q1 2019 Guest speaker: Katarzyna Devavry, MEP advisor, European Parliament Moderator: Helena Polomik, policy advisor, EUROCITIES 6 May 2019

  2. Overview of the webinar Part I – State of play on the Multiannual Financial Framework Part II - State of play on the CPR and ERDF/CF Part III - Questions and answers

  3. Part I State of play: MFF • Broader context, main elements of the EC proposal • EP position on the issue at stake with a specific focus on cohesion policy, state of play and timeline

  4. MFF Procedure • Regulation laying down the Multiannual Financial Framework is unanimously agreed by the Council after the consent of the European Parliament (consent procedure) • European Parliament’s MFF standing rapporteurs are Jan Olbrycht (EPP) & Isabelle Thomas (S&D) and for own resources Janusz Lewandowski (EPP) and Gérard Deprez (ALDE).

  5. Future of EU finances – 5 scenarios Publication: 28 June 2017

  6. Context of the MFF discussion - Brexit • Challenges: • Brexit gap EUR 10-15 bln/year • New priorities EUR 11 bln/year • Total of gap: EUR 25 bln/year • Solutions: • Higher MS’s contribution (%GNI) • New own resources • Reduction of policies

  7. 14 March 2018: European Parliament presents its expectations on the MFF post-2020 • European Parliament resolution of 14 March 2018 on the next MFF: Preparing the Parliament’s position on the MFF post-2020 (2017/2052(INI)) and • European Parliament resolution of 14 March 2018 on the reform of the European Union’s system of own resources(2017/2053(INI))

  8. 2May 2018: European Commission publishes its proposition for the next MFF • Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the regions A Modern Budget for a Union that Protects, Empowers and Defends The Multiannual Financial Framework for 2021-2027 • Proposal for a Council regulation laying down the Multiannual Financial Framework for the years 2021 to 2027 • Proposal for a Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management • Proposal for a regulation of the European Parliament and of the Council on the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States • Proposal for a Council decision on the system of Own Resources of the European Union

  9. Some aspects of the Commission proposal on MFF 2021-2027 • Duration of the next MFF: 7 years • MFF figures:EUR1 134 583 bln(constant prices 2018), 1,11% GNI (including European Development Fund) • Reduction of sectoral programmes from 58 to 37 • Less money for cohesion policy (-10%) and common agriculture policy (-15%)

  10. 29 May 2018 – 14 June 2018 EC publishes sectorial regulations • Less sectorial programmes

  11. New rule of law mechanism

  12. New system of own resources

  13. Reaction of the European Parliament to the Commission proposal • European Parliament resolution of 30 May 2018 on the 2021-2027 Multiannual Financial Framework and own resources • European Parliament resolution of 14 November 2018 on the Multiannual Financial Framework 2021-2027 – Parliament’s position with a view to an agreement (Interim report)

  14. Main elements of Interim report • MFF figures: in the context of Brexit gap, need to finance new priorities and keep current level of financing of existing policies, EP considers that the level of the 2021-2027 MFF should be set at EUR 1 324.1 billion in 2018 prices, representing 1,3 % of the EU-27 GNI, • More flexibility and compulsory and legally binding mid-term revision, • Duration: last time 7 years as transitional solution and to move progressively towards a 5+5 political cycle • Structure: Accepts the overall structure of seven MFF headings (more clarity and transparency of the budget); EP position with regard to the structure and composition of the 37 new programmes will be determined in the course of adopting the relevant sectoral legislative acts; • Unity of the budget: all commitments and payments in one place; welcomes the proposed integration of the European Development Fund into the Union budget • Rule of law: warns, that final beneficiaries of the Union budget shall in no way be affected by the disregard • New own resources as condition to accept MFF

  15. Main financial elements • Increase the budget for Horizon Europe to reach EUR 120 billion in 2018 prices; • Increase the allocation for the InvestEU Fund, so that it better reflects the 2014-2020 level of the financial instruments integrated into the new programme; • Increase the level of funding for transport infrastructure through the Connecting Europe Facility programme (CEF-Transport) (+ EUR 6 bilion); • Double the specific funding for SMEs (compared to COSME) in the single market programme, with the aim of enhancing their access to markets, improving business conditions and the competitiveness of enterprises, and promoting entrepreneurship; • Further increase the single market programme to finance a new objective on market surveillance; • Double the proposed level of funding for the EU anti-fraud programme, and increase the level of funding for the FISCALIS programme; • Introduce a specific allocation for sustainable tourism; • Further reinforce the European space programme, notably to reinforce SSA / GOVSATCOM as well as Copernicus; • Maintain the financing of cohesion policy for the EU-27 at the level of the 2014-2020 budget in real terms; • Double the resources for tackling youth unemployment in the ESF+ (compared to the current Youth Employment Initiative), while ensuring the scheme’s effectiveness and added value; • xi. Introduce a specific allocation (EUR 5.9 billion) for the Child Guarantee, in order to tackle child poverty both within the EU and through its external actions; • xii. Triple the current budget for the Erasmus+ programme; • xiii. Secure a sufficient level of funding for theDiscoverEU programme (Interrail);

  16. Increase the current funding for the Creative Europe programme; • Increase the current funding for the Rights and Values programme and introduce a specific allocation for a new Union values strand (at least EUR 500 million), in order to support civil society organisations which promote fundamental values and democracy within the EU at local and national level; • Maintain the financing of the Common Agricultural Policy (CAP) for the EU-27 at the level of the 2014-2020 budget in real terms while budgeting the initial amount of the agricultural reserve; • Reinforce by 10 % the level of the European Maritime and Fisheries Fund, in accordance with its new mission on the blue economy; • Double the current funding for the Life+ programme, including dedicated envelopes for biodiversity and the management of the Natura 2000 network; • Introduce a specific allocation (EUR 4.8 billion) for a new Just Energy Transition Fund to address societal, socio-economic and environmental impacts on workers and communities adversely affected by the transition from coal and carbon dependence; • Reinforce the instrument(s) in support of neighbourhood and development policies (EUR 3.5 billion) to further contribute to the financing of an investment plan for Africa; • Reinstate at least the 2020 level for all agencies.

  17. Annex III – MFF 2021-2027: breakdown per programme (2018 prices)

  18. State of play of the MFF negotiations • European Parliament is ready to negotiate since 14 November 2018 • Council is working on its common position (Working Groups, GAC) and prepare “negotiation box” with co-decision sectorial elements but • Problem of the European Council in this negotiations (formally has no say, in practice heads of state and government will decide everything unanimously and inform the Council!) They will take a final decision on co-decision sectorial elements! • European Parliament opposed to this method!

  19. Next steps • European Council is expecting to take its final decision in autumn 2019 • Council will send the MFF proposal to the European Parliament for the consent at the beginning of 2020 • EP might say YES or NO! Depending on the content! • If EP says NO, Council should work on the new proposal... and • Problem with Brexit: UK in? out? • Problem with the late start of the sectorial programmes (especially important for cohesion policy)

  20. Part II State of play: CPR and ERDF/CF • Main elements of EC proposals, relevant aspects for local authorities • EP position on the issue at stake with a specific focus on the urban policy related matters, state of play of the trialogues and timeline

  21. Our requests on cohesion policy (CPR/ERDF) • Cities must be properly involved in programming • Ensure that the partnership principle is fully applied also in the programming phase • Integrated place-based approach must work better across funds • Enable a stronger integration of ERDF and ESF+ in all territorial tools • Make more explicit that the scope of ESF+ covers policy objective 5 • Reinstall the integrated territorial approach in ESF+ • Greener and more flexible thematic concentration • Increase the concentration on green/climate objectives (PO2) in all regions • Ensure sustainable, multimodal urban mobility is (back) in PO2 • Increase flexibility to address country/region specific challenges • Stronger ambition to innovate urban development • increase the earmarking for sustainable urban development to 10% of ERDF • create the conditions for ESF+ to support sustainable urban development • strengthen links between urban agenda, URBACT, UIA and mainstream ERDF

  22. Cohesion policy in the MFF 2021-2027

  23. Cohesion policy – some elements of Common Provisions Regulation (CPR) CPR regulation Ordinary legislative procedure (COD) = Parliament and Council on equal footing – formerly ‘co-decision’ Key dates of the procedure 13.02.2019 text adopted by Parliament = mandate for the negotiations 4 formal trialogues with the Council + technical meetings 27.03.2019 text adopted by Parliament, 1st reading Next: Second reading

  24. Cohesion policy – some elements of CPR • CPR Common Provisions Regulation = common framework for • 7 Funds (EP 8 Funds) • ERDF European regional Development Fund • CF Cohesion Fund • ESF+ European Social Fund+ • EMFF European Maritime and Fisheries Fund • AMIF Asylum and Migration Fund • SF Internal Security Found • BMVI Border Management and Visa Instrument • EAFRD European Agriculture Fund for Rural Development

  25. Partnership agreement

  26. Readjustment of balance between the Investment for jobs and growth goal and the European territorial cooperation (Interreg) goal

  27. European Urban Initiative

  28. Transfer from cohesion policy to InvestEU and CEF Transfer to CEF was not specified in the MFF interim report

  29. Transfers between funds and between categories of regions – more flexibility • Transfers between funds • Transfer from the allocation from less developed regions

  30. Co-financing rate

  31. Cohesion policy – some elements of ERDF ERDF and Cohesion Found regulation Ordinary legislative procedure (COD) = Parliament and Council on equal footing – formerly ‘co-decision’ Key dates of the procedure Council not ready for the negotiation so no need to adopt in hurry EP mandate for the negotiations (like for CPR) 27.03.2019 text adopted by Parliament, 1st reading Next: Second reading

  32. Importance of 5 policy objectives

  33. Thematic concentration EC proposal EP position

  34. Policy objectives: some changes Urban mobility: from PO3 PO2

  35. NEW: investments in housing in PO4

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