A functional single area depends on the modern and highly performing infrastructure connecting Europe especially in the area of transports, energy and information and communications technology.
For the 2014-2020 financial period, an estimated EUR 200 Billion will be necessary for finalizing the Trans-European energy networks, EUR 540 Billion for the Trans-European transport network and more than EUR 250 Billion for information and communications technology. Although the market could and should supply a major part of necessary investments, the market failures should be eliminated by filling in gaps, eliminating deadlocks and providing the appropriate cross-border connections. However, experience shows that national budgets will never give enough priority to cross-border investments carried out in several countries for equipping the single area with the infrastructure it needs. This is another example of added value of the EU budget which could ensure financing for the pan-European projects aimed at rehabilitating or building the missing links in the area of transport and energy, thus connecting the East to the West and the North to the South. New EU member states have focused on investing in the east-west links, which makes the allocation of the 2014-2020 budget to follow project on the north-south connection.
Consequently, the Commission has decided to propose the establishment of the “Connecting Europe” Facility to accelerate the development of the infrastructures that Europe needs. These connections which stimulate the economic growth will provide an easier access on the domestic market and end the isolation of certain economic “islands”.
The Connecting Europe Facility will finance EU’s priority interest infrastructures previously identified in the area of transport, energy and information technology, as well as physical and information technology infrastructures which observe the sustainable development criteria.
“Connecting Europe” will be managed at central level and financed from a special budget and with funds dedicated to transport within the Cohesion Fund. EU budget co-financing rates will be higher if investments are carried out in “convergence” regions than if they are carried out in “competitiveness” regions.
Local and regional infrastructures will be connected to EU’s priority infrastructures, connecting all citizens, from the entire EU territory, and can be co-financed through structural funds (FEDER or the Cohesion Fund, according to the situation of each member state or region). Considering the infrastructure deficit in new member states, the Commission decided to propose a relatively unchanged allocation for the Cohesion Fund. This will stimulate investments in the area of transports and support the connections between them and the rest of the EU.
Therefore, the Commission proposes the allocation of EUR 40 Billion for the period 2014-2020 for the “Connecting Europe” programme, with an additional EUR 10 Billion dedicated to transport investments within the Cohesion Fund.
This includes EUR 9.1 Billion for the energy sector, EUR 31.6 billion for transport (including EUR 10 Billion within the Cohesion Fund) and 9.1 Billion for information and communications technology.
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