Comité van de Regio's wil structurele tekort EU-begroting wegwerken en doet aanbevelingen voor betere uitgaven EU (en)
It is for the first time that the CoR draws up an opinion on the annual EU budget procedure. EU cities and regions raise an alarm about the growing EU structural deficit and focus on how to implement the annual strategic priorities, such as the launch of the Youth Employment Initiative. They also adopted an opinion on better spending providing recommendations for improving the effectiveness of EU funding 2014-2020 through better governance and a stronger attention to territorial differences.
Local and regional authorities are involved in managing or spending over 75% of the EU budget. They are therefore determined to intensify their contribution to the decisions related to headings of which they are main beneficiaries or key actors.
In its first opinion on an annual EU budget, drafted by Luc Van den Brande (EPP/BE), Chairman of the Flemish-European Liaison Agency, the CoR reiterates its deep concerns on the cuts made in investment essential for economic recovery. In this perspective, it is of capital importance that further frontloading of commitment appropriations are ensured (up to EUR 200 million for Horizon 2020, EUR 150 million for Erasmus i and EUR 50 million for COSME in 2014-2015).
Given the delays resulting from the negotiations on the MFF and cohesion policy regulations, regions and cities call on Member States to make all efforts to already activate funds in 2014, speeding up the finalisation of partnership agreements and intensifying cooperation in drafting the new operational programmes.
Regions and cities are worried also by the increasing amounts of payments to be liquidated and by the absence of a comprehensive approach to this problem. By the end of 2013 claims for payments (or RALs - "reste à liquider") from 2007-2013 programmes should reach approximately EUR 225 million. “The largest part of this deficit is made by reimbursements of regional expenses operated for the implementation of cohesion policy and rural development programmes” underlined the rapporteur, adding that ”the Committee urges therefore the Commission, the Parliament and the Council to find a structural solution so that local and regional authorities’ financial stability is no longer threatened by shortfalls in EU payment appropriations. This is a key factor also to ensure the sustainability of our growth plans as well as to mobilise private investors”. To this purpose, concludes Mr Van den Brande: “Outstanding claims from 2007-2013 should be absolutely paid in 2014-2016, before the increase in payment claims expected in 2017-2018 in relation to the new operational programmes”.
In accordance with the abovementioned requests, the CoR supports the Parliament's position that the consent vote on the MFF Council Regulation cannot be granted unless there is an "absolute guarantee" that the outstanding payment claims for 2013 will be covered in full and that therefore the Council should take not only a formal decision on the Draft Amending Budget (DAB) 2/2013 (EUR 7.3 billion) but also stick to its political commitment to adopt without delay a further amending budget (EUR 3.9 billion, to reach the EUR 11.2 billion required) and welcomes the Commission decision to base its Draft Budget 2014 on the assumption that these two DABs 2013 will be adopted.
With regard to the strategic priorities of the 2014 budget, regions and cities focus on the effective launch of the Youth Employment Initiative. The EUR 6 billion frontloading proposed by the Commission should be accompanied by measures to support rapid implementation starting from capacity building interventions. Finally, in order to ensure democratic scrutiny as well as the effective involvement of the CoR within the annual budgetary procedure, Mr Van den Brande insisted on the need to fill the current gap of information: “We requests the Commission to provide, as from 2014, consolidated data on funds received per budget line and type of beneficiary, notably subnational public authorities; the breakdown of outstanding payment claims also by category of beneficiary and the amount of funds raised by national/subnational authorities for co-financing EU projects under shared management”.
With the opinion drafted by Alberto Nuñez Feijóo, (EPP/ES), President of the Autonomous Community of Galicia, CoR members address the main factors that must be dealt with in order to improve the quality of EU spending in the phase 2014-2020, such as governance, conditionalities and simplification. “Regions and cities representatives reiterate the need for a stronger coordination among involved administrative levels and for integrating cohesion policy activities” said President Nunez Feijóo, stressing that “decentralised implementation is more efficient in terms of both costs and quality of services, because it is closer to the grassroots level and it offers major advantages in identifying needs as well as in the design of policies”.
As regards conditionalities, the CoR reiterates that ex ante conditionalities should be restricted to areas directly related to the implementation of cohesion policy. This latter cannot be overloaded with responsibilities which are not its concern and which merely increase bureaucracy. The Committee also reiterates its firm opposition to macroeconomic conditionality and points out that regions and local authorities are in most cases not responsible for the achievement of economic governance objectives. According to the rapporteur, “Such a conditionality would make cohesion policy less fair while giving rise to uncertainty as to the financing of new projects”.
Addressing the problem of simplifying procedures, the CoR points out that the simplifications announced in the 2007-2013 period have not materialised; on the contrary, disproportionate costs have arisen. The Committee therefore reiterates the need for simplifying administrative burden, focusing on programme management. To this purpose, CoR members propose the standardisation of procedures and documents, the use of common IT tools and the establishment of one-stop shops, thus avoiding interdepartmental formalities within the same administration. They also recommend the alternative approach of standard costs as a model for approval and justification of spending.
Finally, taking into account the rising expectations for the role of innovative financial instruments in the phase 2014-2020, the CoR highlights the operational difficulties facing these instruments at present. Therefore it reiterates the need to facilitate the use of loan-based instruments in the appropriate areas, when implementing cohesion policy, to alleviate the burden on regional and local budgets.
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