In the next financial period, the European Commission seeks to distribute funds according to results and performance, focusing to put together its Europe 2020 agenda by strongly conditioning the cohesion policy. This focuses on levelling up the economies of the states and regions and integrating the Single Market for each member state.
The European Commission’s 2020 budget is proposing important changes to the way cohesion policy is designed and implemented. Funding will be concentrated on a smaller number of priorities, progress towards agreed objectives will be monitored more closely and strict conditionalities will be established in partnership contracts with the Member States. This will allow EU cohesion policy to make the greatest possible contribution to economic, social and territorial cohesion.
Cohesion funding will continue to be concentrated on the less developed regions and Member States. However, in view of the difficulties experienced by Member States in absorbing structural funding and in raising the necessary co-financing, the cohesion allocation will be capped at 2.5% of gross national income. Also, the EC proposes a new category of region – “transition regions” – including all regions with a GDP per capita between 75% and 90% of the EU27 average. The level of support will vary according to the level of GDP, so that regions with GDP close to 90% of the EU average will receive an aid similar to that of the more developed regions.
Transition regions and competitive regions would be required to focus the entire allocation of cohesion funding primarily on energy efficiency and renewable energy; SME competitiveness and innovation. In these regions, investments in energy efficiency and renewable energy will be at least 20%.
EU’s investments in the cohesion policy are estimated at EUR 336 Billion, 5.3% less compared to the previous financial period.
The cohesion policy proposal is focused on three categories of regions: less-developed regions (GDP per capita less than 75% of the EU average), transition regions (75%-90%) and developed regions (over 90% of the average EU GDP per capita).
Finally, for territorial cooperation, EC proposed three axes: cross-border, transnational and inter-regional cooperation.
Territorial cooperation will continue to play its role in helping regions overcome the disadvantages of their location on internal or external borders, in contributing to an ambitious neighbourhood policy and addressing shared cross-border and transnational challenges.
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