The general objectives of European Community (European Union) external action are beautiful, but they need to be put into practice.
In the area of development cooperation the Treaty establishing the European Community spells out how the legislative measures are taken.
The EU Treaty of Lisbon modifies and modernises the current treaty level provisions.
In addition, we present some of the existing secondary legislation for readers interested in EU development cooperation law and policies.
***
Current treaty
Article 179 of the Treaty establishing the European Community (TEC) deals with how the development cooperation objectives are put into practice.
These measures include, but are not restricted to, multiannual programmes. The co-decision procedure applies, so the European Parliament participates on an equal basis as co-legislator.
The European Investment Bank (EIB) contributes to implementation by making funds available.
The special role of cooperation with the African, Caribbean and Pacific countries ACPs) within the framework of the ACP-EC Convention is emphasised treating it separately.
The current Article 179 TEC, as published in the latest consolidated version of the treaties, OJEU 29.12.2006 C 321 E/126:
Article 179 TEC
1. Without prejudice to the other provisions of this Treaty, the Council, acting in accordance with the procedure referred to in Article 251, shall adopt the measures necessary to further the objectives referred to in Article 177. Such measures may take the form of multiannual programmes.
2. The European Investment Bank shall contribute, under the terms laid down in its Statute, to the implementation of the measures referred to in paragraph 1.
3. The provisions of this Article shall not affect cooperation with the African, Caribbean and Pacific countries in the framework of the ACP-EC Convention.
***
Original Lisbon Treaty
Article 2, point 162 of the original Treaty of Lisbon (ToL) amended Article 179 and made it into Article 188e (OJEU 17.12.2007 C 306/94):
162) An Article 188 E shall be inserted, with the wording of Article 179; it shall be amended as follows:
(a) paragraph 1 shall be replaced by the following:
‘1. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt the measures necessary for the implementation of development cooperation policy, which may relate to multiannual cooperation programmes with developing countries or programmes with a thematic approach.’;
(b) the following new paragraph 2 shall be inserted:
‘2. The Union may conclude with third countries and competent international organisations any agreement helping to achieve the objectives referred to in Article 10 A of the Treaty on European Union and in Article 188 D of this Treaty.
The first subparagraph shall be without prejudice to Member States' competence to negotiate in international bodies and to conclude agreements.’;
(c) the current paragraph 2 shall be renumbered ‘3’ and the current paragraph 3 shall be deleted.
***
Consolidated Lisbon Treaty
A few months after the signing ceremony the age of private, semi-private, semi-governmental, governmental and parliamentary consolidations came to an end. The Council had picked up the necessary courage to publish the treaties in a readable form, as amended by the Treaty of Lisbon, and on Europe Day 9 May 2008 the consolidated version was even published in the Official Journal of the European Union.
Had the Council’s initial refusal to publish a consolidation before the new treaty was in force prevailed, we would still be waiting for an ‘official’ consolidation in all official EU languages and a common reference for all EU citizens until the beginning of 2010 at the earliest and possibly eternally.
With joy and gratitude we present Article 188e of the Treaty on the Functioning of the European Union (TFEU ToL), renumbered and reassembled in the consolidated version as Article 209 TFEU, OJEU 9.5.2008 C 115/141:
Article 209 TFEU
(ex Article 179 TEC)
1. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt the measures necessary for the implementation of development cooperation policy, which may relate to multiannual cooperation programmes with developing countries or programmes with a thematic approach.
2. The Union may conclude with third countries and competent international organisations any agreement helping to achieve the objectives referred to in Article 21 of the Treaty on European Union and in Article 208 of this Treaty.
The first subparagraph shall be without prejudice to Member States' competence to negotiate in international bodies and to conclude agreements.
3. The European Investment Bank shall contribute, under the terms laid down in its Statute, to the implementation of the measures referred to in paragraph 1.
***
Lisbon Treaty changes
Here as elsewhere in the Lisbon Treaty the terminology would be improved. The ordinary legislative procedure would take over from the unnamed procedure referred to in Article 251 (generally called co-decision). The formal abolishment of the pillar structure would leave us with just the European Union, instead of the distinction between the EU and the European Community (EC) hardly anyone makes nowadays. These horizontal amendments apply to Article 209 TFEU as well.
The terminology of the Constitutional Treaty would have been even better (‘European laws or framework laws’), but only the citizens of Spain and Luxembourg approved in referenda, whereas the French and the Dutch voters preferred the contents and wording of the Treaty of Nice in 2005.
In substance Article 209 TFEU is the same as Article III-317 of the Constitutional Treaty, although the Lisbon Treaty achieves this in a convoluted way by amending Article 179 TEC.
The first paragraph adds the important category of thematic programmes.
Deleting the third paragraph exception concerning African, Caribbean and Pacific (ACP) countries in the framework of the ACP-EC Convention may contribute to a more global view of development cooperation if the European Development Fund (EDF) is finally integrated into the general budget of the European Union.
***
ACP-EC Partnership Agreement: Cotonou Agreement
The ACP-EC Partnership Agreement was signed in 2000 in Cotonou and it entered into force in 2003. In 2005 the Cotonou Agreement was revised and the revision entered into force on 1 July 2008.
The text of the revised Cotonou Agreement is available here:
http://ec.europa.eu/development/icenter/repository/Cotonou_EN_2006_en.pdf
The Cotonou Agreement is not a development aid programme in a narrow sense, but based on three pillars:
· Development cooperation
· Economic and trade cooperation
· Political cooperation
***
10th European Development Fund (EDF)
The Tenth European Development Fund (EDF) is the main instrument for development cooperation with the ACP countries (as well as the associated overseas countries and territories, OCTs).
The EDF is based on an intergovernmental agreement between the EU member states and it still remains outside the general budget of the European Union.
A presentation of the 10th EDF, allocated 22.7 billion euros for the period 2008 to 2013, is available here:
http://ec.europa.eu/development/how/source-funding/10edf_en.cfm
The Tenth EDF is based on the revised Cotonou Agreement and the Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing of Community aid under the multiannual financial framework for the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty.
The Council has issued an implementing Regulation, officially Council Regulation (EC) No 617/2007 of 14 May 2007 on the implementation of the 10th European Development Fund under the ACP-EC Partnership Agreement, published OJEU 13.6.2007 L 152/1, available here:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:152:0001:0013:EN:PDF
***
European Investment Bank (EIB)
The current treaty and the Lisbon Treaty refer to the contribution of the European Investment Bank (EIB) to the implementation of development cooperation programmes.
From the home page of the EIB you can access information about the bank’s activities and publications:
http://www.eib.org/
The Statute of the European Investment Bank is annexed as a Protocol to the current TEC as No 11. Although the Lisbon Treaty is not in force, the latest version (and consistent with the Lisbon Treaty numbering of provisions) is Protocol (No 5) on the Statute of the European Investment Bank, OJEU 9.5.2008 C 115/251.
The general treaty level provisions on the EIB are Articles 308 and 309 TFEU.
Ralf Grahn
Showing posts with label EIB. Show all posts
Showing posts with label EIB. Show all posts
Saturday, 31 January 2009
Sunday, 28 December 2008
EU Law: Structural Funds
Cohesion may be a concept difficult to understand, but the structural funds and related policy instruments of the European Community (European Union) are readily comprehended in terms of euros.
The resources are managed by the European Commission (Regional policy) and spent or invested in the EU member states.
This blog post offers information about both EU law and policy.
***
Article 159 TEC
Article 159 TEC (ex Article 130a) sets out the means to achieve the strengthening of economic and social cohesion.
The member states are primarily responsible for economic policies, but they have undertaken to coordinate them. Article 159 TEC adds the cohesion objectives to the factors to take into account when conducting and coordinating economic policies.
Article 159 lays down a horizontal requirement to take into account the cohesion objectives in Community actions and policies generally as well as the implementation of the internal market.
The European Community (European Union) supports the achievement of cohesion objectives through the Structural Funds. The following Structural Funds are specifically mentioned:
· European Agricultural Guidance and Guarantee Fund, Guidance Section
· European Social Fund
· European Regional Development Fund
In addition, the first paragraph mentions:
· the European Investment Bank
· the other existing Financial Instruments
The second paragraph of Article 159 TEC sets out an obligation for the Commission to report on economic and social cohesion every three years, if appropriate with proposals.
Other measures can be adopted according to the co-decision procedure.
Here is the current Article 159 of the Treaty establishing the European Community (TEC), as published in the latest consolidated version of the treaties, OJEU 29.12.2006 C 321 E/118–119:
(TITLE XVII
ECONOMIC AND SOCIAL COHESION)
Article 159 TEC
Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 158. The formulation and implementation of the Community's policies and actions and the implementation of the internal market shall take into account the objectives set out in Article 158 and shall contribute to their achievement. The Community shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the European Investment Bank and the other existing Financial Instruments.
The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic and social cohesion and on the manner in which the various means provided for in this Article have contributed to it. This report shall, if necessary, be accompanied by appropriate proposals.
If specific actions prove necessary outside the Funds and without prejudice to the measures decided upon within the framework of the other Community policies, such actions may be adopted by the Council acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions.
***
Original Lisbon Treaty (ToL)
Although the Treaty of Lisbon is unreadable on its own, it spells out how or if the current treaties are amended.
Sometimes there are no specific amendments, although most of the times one or more of the horizontal amendments apply.
Article 2, point 132 of the Lisbon Treaty amended Article 159 TEC (OJEU 17.12.2007 C 306/85):
132) In Article 159, second paragraph, the words ‘economic and social’ shall be replaced by ‘economic, social and territorial’.
***
Renumbering ToL
The Table of equivalences of the original Treaty of Lisbon tells us that Title XVII first became Title XVII with the addition of territorial in the TFEU (ToL), and renumbered Title XVIII Economic, social and territorial cohesion in the consolidated version.
Article 159 TEC initially became Article 159 TFEU (ToL) before the renumbering of the treaty made it into Article 175 TFEU in the consolidated version (OJ 17.12.2007 C 306/217).
***
Lisbon Treaty consolidated
Article 175 TFEU
Territorial was added to the Title and the preceding Article and consequently to Article 159 TEC. The Article has been renumbered. The Community has been replaced by the Union and the procedure referred to in Article 251 (co-decision) has been renamed the ordinary legislative procedure.
Article 175 TFEU appears like this in the consolidated version of the Treaty of Lisbon (OJ 9.5.2008 C 115/127):
(TITLE XVIII
ECONOMIC, SOCIAL AND TERRITORIAL COHESION)
Article 175 TFEU
(ex Article 159 TEC)
Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 174. The formulation and implementation of the Union's policies and actions and the implementation of the internal market shall take into account the objectives set out in Article 174 and shall contribute to their achievement. The Union shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the European Investment Bank and the other existing Financial Instruments.
The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic, social and territorial cohesion and on the manner in which the various means provided for in this Article have contributed to it. This report shall, if necessary, be accompanied by appropriate proposals.
If specific actions prove necessary outside the Funds and without prejudice to the measures decided upon within the framework of the other Union policies, such actions may be adopted by the Council acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions.
***
General EU aims
The third subparagraph of Article 3(3) of the amended Treaty on European Union (TEU) states that the EU shall promote economic, social and territorial cohesion, and solidarity among member states.
***
EU powers in general
The powers of the European Union are attributed or conferred by the member states through the treaties (including their aims). The Treaty of Lisbon makes an effort to present the different categories of powers (modestly called competences) in a systematic manner.
The taxonomy of EU competence is set out in Article 2 TFEU. The three main or general categories are exclusive competence in 2(1), shared competence in 2(2) as well as supporting, coordinating or supplementing competences in 2(5), although the exact scope and arrangements are laid out in the various treaty provisions as stated in 2(6):
Article 2 TFEU
1. When the Treaties confer on the Union exclusive competence in a specific area, only the Union may legislate and adopt legally binding acts, the Member States being able to do so themselves only if so empowered by the Union or for the implementation of Union acts.
2. When the Treaties confer on the Union a competence shared with the Member States in a specific area, the Union and the Member States may legislate and adopt legally binding acts in that area. The Member States shall exercise their competence to the extent that the Union has not exercised its competence. The Member States shall again exercise their competence to the extent that the Union has decided to cease exercising its competence.
3. The Member States shall coordinate their economic and employment policies within arrangements as determined by this Treaty, which the Union shall have competence to provide.
4. The Union shall have competence, in accordance with the provisions of the Treaty on European Union, to define and implement a common foreign and security policy, including the progressive framing of a common defence policy.
5. In certain areas and under the conditions laid down in the Treaties, the Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States, without thereby superseding their competence in these areas.
Legally binding acts of the Union adopted on the basis of the provisions of the Treaties relating to these areas shall not entail harmonisation of Member States' laws or regulations.
6. The scope of and arrangements for exercising the Union's competences shall be determined by the provisions of the Treaties relating to each area.
***
Article 4 TFEU: Shared competence
Economic, social and territorial cohesion is mentioned among the competences listed as shared in Article 4 TFEU:
Article 4 TFEU
1. The Union shall share competence with the Member States where the Treaties confer on it a competence which does not relate to the areas referred to in Articles 3 and 6.
2. Shared competence between the Union and the Member States applies in the following principal areas:
(a) internal market;
(b) social policy, for the aspects defined in this Treaty;
(c) economic, social and territorial cohesion;
(d) agriculture and fisheries, excluding the conservation of marine biological resources;
(e) environment;
(f) consumer protection;
(g) transport;
(h) trans-European networks;
(i) energy;
(j) area of freedom, security and justice;
(k) common safety concerns in public health matters, for the aspects defined in this Treaty.
3. In the areas of research, technological development and space, the Union shall have competence to carry out activities, in particular to define and implement programmes; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
4. In the areas of development cooperation and humanitarian aid, the Union shall have competence to carry out activities and conduct a common policy; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
***
Protocol (No 28)
The intergovernmental conference attached a Protocol (No 28) on economic, social and territorial cohesion to the treaties, perhaps indicating a growing willingness to take the capacity of less prosperous (new) member states into account both as contributors to the common coffers and as recipients of funds, when coming long term budgets (fiancial perspectives) are prepared and implemented:
PROTOCOL (No 28)
ON ECONOMIC, SOCIAL AND TERRITORIAL COHESION
THE HIGH CONTRACTING PARTIES,
RECALLING that Article 3 of the Treaty on European Union includes the objective of promoting economic, social and territorial cohesion and solidarity between Member States and that the said cohesion figures among the areas of shared competence of the Union listed in Article 4(2)(c) of the Treaty on the Functioning of the European Union,
RECALLING that the provisions of Part Three, Title XVIII, on economic, social and territorial cohesion as a whole provide the legal basis for consolidating and further developing the Union's action in the field of economic, social and territorial cohesion, including the creation of a new fund,
RECALLING that the provisions of Article 177 of the Treaty on the Functioning of the European Union envisage setting up a Cohesion Fund,
NOTING that the European Investment Bank is lending large and increasing amounts for the benefit of the poorer regions,
NOTING the desire for greater flexibility in the arrangements for allocations from the Structural Funds,
NOTING the desire for modulation of the levels of Union participation in programmes and projects in certain countries,
NOTING the proposal to take greater account of the relative prosperity of Member States in the system of own resources,
REAFFIRM that the promotion of economic, social and territorial cohesion is vital to the full development and enduring success of the Union,
REAFFIRM their conviction that the Structural Funds should continue to play a considerable part in the achievement of Union objectives in the field of cohesion,
REAFFIRM their conviction that the European Investment Bank should continue to devote the majority of its resources to the promotion of economic, social and territorial cohesion, and declare their willingness to review the capital needs of the European Investment Bank as soon as this is necessary for that purpose,
AGREE that the Cohesion Fund will provide Union financial contributions to projects in the fields of environment and trans-European networks in Member States with a per capita GNP of less than 90 % of the Union average which have a programme leading to the fulfilment of the conditions of economic convergence as set out in Article 126,
DECLARE their intention of allowing a greater margin of flexibility in allocating financing from the Structural Funds to specific needs not covered under the present Structural Funds regulations,
DECLARE their willingness to modulate the levels of Union participation in the context of programmes and projects of the Structural Funds, with a view to avoiding excessive increases in budgetary expenditure in the less prosperous Member States,
RECOGNISE the need to monitor regularly the progress made towards achieving economic, social and territorial cohesion and state their willingness to study all necessary measures in this respect,
DECLARE their intention of taking greater account of the contributive capacity of individual Member States in the system of own resources, and of examining means of correcting, for the less prosperous Member States, regressive elements existing in the present own resources system,
AGREE to annex this Protocol to the Treaty on the European Union and the Treaty on the Functioning of the European Union.
***
Structural Funds
Information about the Structural Funds can be found through the web page of the Directorate-General for Regional Policy, stating that in the period 2007-2013, cohesion policy will benefit from 35.7% of the total EU budget or 347.41 billion euros (current prices):
http://ec.europa.eu/regional_policy/policy/fonds/index_en.htm
The key objectives are presented on the web page:
http://ec.europa.eu/regional_policy/policy/object/index_en.htm
***
European Agricultural Guidance and Guarantee Fund, Guidance Section
We turn to the Structural Funds specifically mentioned by Article 159 TEC and Article 175 TFEU. In order of appearance the first one we encounter is the European Agricultural Guidance and Guarantee Fund, Guidance Section.
Instead we find the Directorate-General Agriculture and Rural Development responsible for Rural Development Policy 2007–2013, in other words outside the scope of Structural Funds managed by the Directorate-General Regional Policy.
http://ec.europa.eu/agriculture/rurdev/index_en.htm
Even the consolidated Lisbon Treaty seems to behind the times, when we see that the current legal act has created a fund with a new name:
Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (OJEU 21.10.2005 L 277/1).
The EAFRD Regulation is found here:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:277:0001:0040:EN:PDF
***
Some have argued that structural funds spending is the biggest item on the EU budget, ahead of agriculture, but that would require the “second pillar” of the common agricultural policy (CAP) to be counted as part of the structural funds.
Arguably, during the period 2007–2013 structural measures within the context of rural policy are even more tied to the administration of agricultural policy than previously.
Accordingly, my view is still that agriculture is the greatest expense in the EU budget, ahead of the structural funds, and that this will be the case in 2009.
***
European Social Fund (ESF)
Basic information about the European Social Fund (ESF) can be found here:
http://ec.europa.eu/regional_policy/funds/fse/index_en.htm
The ESF Regulation, officially Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999 (OJEU 31.7.2006 L 210/12), is available here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/fse/ce_1081(2006)_en.pdf
***
European Regional Development Fund (ERDF)
You can access information about the European Regional Development Fund (ERDF) here:
http://ec.europa.eu/regional_policy/funds/feder/index_en.htm
The ERDF Regulation, officially Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999 (OJEU 31.7.2006 L 210/1), can be found here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/feder/ce_1080(2006)_en.pdf
***
European Investment Bank
The European Investment Bank (EIB) is mentioned as one of the actors supporting the cohesion objectives.
More information can be found on the web pages of the EIB:
http://www.eib.org/
The latest version of the legal framework of the European Investment Bank, although not in force, is Protocol (No 5) on the statute of the European Investment Bank, annexed to the Lisbon Treaty TEU and TFEU (OJEU 9.5.2007 C 115/251).
***
Cohesion Fund
Among other existing Financial Instruments we find the important Cohesion Fund, designed for the poorer member states. For the 2007-2013 period the Cohesion Fund concerns Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. Spain is eligible to a phase-out fund only as its GNI per inhabitant is less than the average of the EU-15.
Introductory information about the Cohesion Fund, important for infrastructure projects and the environment, can be found here:
http://ec.europa.eu/regional_policy/funds/cf/index_en.htm
Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94 (OJEU 31.7.2006 L 210/79) can be found here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/cohesion/ce_1084(2006)_en.pdf
***
European Union Solidarity Fund (EUSF)
The Member States and countries negotiating accession can request aid from the European Union Solidarity Fund (EUSF) in the event of a major natural disaster. Basic information is found here:
http://ec.europa.eu/regional_policy/funds/solidar/solid_en.htm
The legal act setting up the EUSF is Council Regulation (EC) No 2012/2002 of 11 November 2002 establishingthe European Union Solidarity Fund (OJEC 14.11.2002 L 311/3), which is available here:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2002:311:0003:0008:EN:PDF
***
European Grouping for Territorial Cooperation (EGTC)
According to the Inforegio web page, the EGTC is a new European legal instrument designed to facilitate and promote cross-border, transnational and interregional cooperation. Unlike the structures which governed this kind of cooperation before 2007, the EGTC is a legal entity and as such, will enable regional and local authorities and other public bodies from different member states, to set up cooperation groupings with a legal personality.
Information about this new legal instrument is accessible here:
http://ec.europa.eu/regional_policy/funds/gect/index_en.htm
The establishment of the new legal instrument has required a legal instrument of its own. Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) (OJEU 31.7.2006 L 210/19) is accessible here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/gect/ce_1082(2006)_en.pdf
***
Instrument for Pre-Accession Assistance (IPA)
If we cast our net somewhat wider than the internal cohesion of the European Union, the work can be said to commence in advance with regard to candidate countries and potential candidate countries.
From January 2007 onwards, the Instrument for Pre-Accession Assistance (IPA) replaces a series of European Union programmes and financial instruments for candidate countries or potential candidate countries, namely PHARE, PHARE CBC, ISPA, SAPARD, CARDS and the financial instrument for Turkey.
Information is found here:
http://ec.europa.eu/regional_policy/funds/ipa/index_en.htm
The basic legal instrument is Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA) (OJEU 31.7.2006 L 210/82), available here:
http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/l_210/l_21020060731en00820093.pdf
Implementing rules have been issued by the Commission, Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council Regulation (EC) No 1085/2006 establishing an instrument for pre-accession assistance (IPA) (OJEU 29.7.2007 l 170/1), published here:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:170:0001:0066:EN:PDF
***
Financial engineering
The Commission offers a web page on financial engineering with various combinations aiming at promoting development in EU regions:
http://ec.europa.eu/regional_policy/funds/2007/jjj/index_en.htm
Ralf Grahn
The resources are managed by the European Commission (Regional policy) and spent or invested in the EU member states.
This blog post offers information about both EU law and policy.
***
Article 159 TEC
Article 159 TEC (ex Article 130a) sets out the means to achieve the strengthening of economic and social cohesion.
The member states are primarily responsible for economic policies, but they have undertaken to coordinate them. Article 159 TEC adds the cohesion objectives to the factors to take into account when conducting and coordinating economic policies.
Article 159 lays down a horizontal requirement to take into account the cohesion objectives in Community actions and policies generally as well as the implementation of the internal market.
The European Community (European Union) supports the achievement of cohesion objectives through the Structural Funds. The following Structural Funds are specifically mentioned:
· European Agricultural Guidance and Guarantee Fund, Guidance Section
· European Social Fund
· European Regional Development Fund
In addition, the first paragraph mentions:
· the European Investment Bank
· the other existing Financial Instruments
The second paragraph of Article 159 TEC sets out an obligation for the Commission to report on economic and social cohesion every three years, if appropriate with proposals.
Other measures can be adopted according to the co-decision procedure.
Here is the current Article 159 of the Treaty establishing the European Community (TEC), as published in the latest consolidated version of the treaties, OJEU 29.12.2006 C 321 E/118–119:
(TITLE XVII
ECONOMIC AND SOCIAL COHESION)
Article 159 TEC
Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 158. The formulation and implementation of the Community's policies and actions and the implementation of the internal market shall take into account the objectives set out in Article 158 and shall contribute to their achievement. The Community shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the European Investment Bank and the other existing Financial Instruments.
The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic and social cohesion and on the manner in which the various means provided for in this Article have contributed to it. This report shall, if necessary, be accompanied by appropriate proposals.
If specific actions prove necessary outside the Funds and without prejudice to the measures decided upon within the framework of the other Community policies, such actions may be adopted by the Council acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions.
***
Original Lisbon Treaty (ToL)
Although the Treaty of Lisbon is unreadable on its own, it spells out how or if the current treaties are amended.
Sometimes there are no specific amendments, although most of the times one or more of the horizontal amendments apply.
Article 2, point 132 of the Lisbon Treaty amended Article 159 TEC (OJEU 17.12.2007 C 306/85):
132) In Article 159, second paragraph, the words ‘economic and social’ shall be replaced by ‘economic, social and territorial’.
***
Renumbering ToL
The Table of equivalences of the original Treaty of Lisbon tells us that Title XVII first became Title XVII with the addition of territorial in the TFEU (ToL), and renumbered Title XVIII Economic, social and territorial cohesion in the consolidated version.
Article 159 TEC initially became Article 159 TFEU (ToL) before the renumbering of the treaty made it into Article 175 TFEU in the consolidated version (OJ 17.12.2007 C 306/217).
***
Lisbon Treaty consolidated
Article 175 TFEU
Territorial was added to the Title and the preceding Article and consequently to Article 159 TEC. The Article has been renumbered. The Community has been replaced by the Union and the procedure referred to in Article 251 (co-decision) has been renamed the ordinary legislative procedure.
Article 175 TFEU appears like this in the consolidated version of the Treaty of Lisbon (OJ 9.5.2008 C 115/127):
(TITLE XVIII
ECONOMIC, SOCIAL AND TERRITORIAL COHESION)
Article 175 TFEU
(ex Article 159 TEC)
Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 174. The formulation and implementation of the Union's policies and actions and the implementation of the internal market shall take into account the objectives set out in Article 174 and shall contribute to their achievement. The Union shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the European Investment Bank and the other existing Financial Instruments.
The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic, social and territorial cohesion and on the manner in which the various means provided for in this Article have contributed to it. This report shall, if necessary, be accompanied by appropriate proposals.
If specific actions prove necessary outside the Funds and without prejudice to the measures decided upon within the framework of the other Union policies, such actions may be adopted by the Council acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions.
***
General EU aims
The third subparagraph of Article 3(3) of the amended Treaty on European Union (TEU) states that the EU shall promote economic, social and territorial cohesion, and solidarity among member states.
***
EU powers in general
The powers of the European Union are attributed or conferred by the member states through the treaties (including their aims). The Treaty of Lisbon makes an effort to present the different categories of powers (modestly called competences) in a systematic manner.
The taxonomy of EU competence is set out in Article 2 TFEU. The three main or general categories are exclusive competence in 2(1), shared competence in 2(2) as well as supporting, coordinating or supplementing competences in 2(5), although the exact scope and arrangements are laid out in the various treaty provisions as stated in 2(6):
Article 2 TFEU
1. When the Treaties confer on the Union exclusive competence in a specific area, only the Union may legislate and adopt legally binding acts, the Member States being able to do so themselves only if so empowered by the Union or for the implementation of Union acts.
2. When the Treaties confer on the Union a competence shared with the Member States in a specific area, the Union and the Member States may legislate and adopt legally binding acts in that area. The Member States shall exercise their competence to the extent that the Union has not exercised its competence. The Member States shall again exercise their competence to the extent that the Union has decided to cease exercising its competence.
3. The Member States shall coordinate their economic and employment policies within arrangements as determined by this Treaty, which the Union shall have competence to provide.
4. The Union shall have competence, in accordance with the provisions of the Treaty on European Union, to define and implement a common foreign and security policy, including the progressive framing of a common defence policy.
5. In certain areas and under the conditions laid down in the Treaties, the Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States, without thereby superseding their competence in these areas.
Legally binding acts of the Union adopted on the basis of the provisions of the Treaties relating to these areas shall not entail harmonisation of Member States' laws or regulations.
6. The scope of and arrangements for exercising the Union's competences shall be determined by the provisions of the Treaties relating to each area.
***
Article 4 TFEU: Shared competence
Economic, social and territorial cohesion is mentioned among the competences listed as shared in Article 4 TFEU:
Article 4 TFEU
1. The Union shall share competence with the Member States where the Treaties confer on it a competence which does not relate to the areas referred to in Articles 3 and 6.
2. Shared competence between the Union and the Member States applies in the following principal areas:
(a) internal market;
(b) social policy, for the aspects defined in this Treaty;
(c) economic, social and territorial cohesion;
(d) agriculture and fisheries, excluding the conservation of marine biological resources;
(e) environment;
(f) consumer protection;
(g) transport;
(h) trans-European networks;
(i) energy;
(j) area of freedom, security and justice;
(k) common safety concerns in public health matters, for the aspects defined in this Treaty.
3. In the areas of research, technological development and space, the Union shall have competence to carry out activities, in particular to define and implement programmes; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
4. In the areas of development cooperation and humanitarian aid, the Union shall have competence to carry out activities and conduct a common policy; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
***
Protocol (No 28)
The intergovernmental conference attached a Protocol (No 28) on economic, social and territorial cohesion to the treaties, perhaps indicating a growing willingness to take the capacity of less prosperous (new) member states into account both as contributors to the common coffers and as recipients of funds, when coming long term budgets (fiancial perspectives) are prepared and implemented:
PROTOCOL (No 28)
ON ECONOMIC, SOCIAL AND TERRITORIAL COHESION
THE HIGH CONTRACTING PARTIES,
RECALLING that Article 3 of the Treaty on European Union includes the objective of promoting economic, social and territorial cohesion and solidarity between Member States and that the said cohesion figures among the areas of shared competence of the Union listed in Article 4(2)(c) of the Treaty on the Functioning of the European Union,
RECALLING that the provisions of Part Three, Title XVIII, on economic, social and territorial cohesion as a whole provide the legal basis for consolidating and further developing the Union's action in the field of economic, social and territorial cohesion, including the creation of a new fund,
RECALLING that the provisions of Article 177 of the Treaty on the Functioning of the European Union envisage setting up a Cohesion Fund,
NOTING that the European Investment Bank is lending large and increasing amounts for the benefit of the poorer regions,
NOTING the desire for greater flexibility in the arrangements for allocations from the Structural Funds,
NOTING the desire for modulation of the levels of Union participation in programmes and projects in certain countries,
NOTING the proposal to take greater account of the relative prosperity of Member States in the system of own resources,
REAFFIRM that the promotion of economic, social and territorial cohesion is vital to the full development and enduring success of the Union,
REAFFIRM their conviction that the Structural Funds should continue to play a considerable part in the achievement of Union objectives in the field of cohesion,
REAFFIRM their conviction that the European Investment Bank should continue to devote the majority of its resources to the promotion of economic, social and territorial cohesion, and declare their willingness to review the capital needs of the European Investment Bank as soon as this is necessary for that purpose,
AGREE that the Cohesion Fund will provide Union financial contributions to projects in the fields of environment and trans-European networks in Member States with a per capita GNP of less than 90 % of the Union average which have a programme leading to the fulfilment of the conditions of economic convergence as set out in Article 126,
DECLARE their intention of allowing a greater margin of flexibility in allocating financing from the Structural Funds to specific needs not covered under the present Structural Funds regulations,
DECLARE their willingness to modulate the levels of Union participation in the context of programmes and projects of the Structural Funds, with a view to avoiding excessive increases in budgetary expenditure in the less prosperous Member States,
RECOGNISE the need to monitor regularly the progress made towards achieving economic, social and territorial cohesion and state their willingness to study all necessary measures in this respect,
DECLARE their intention of taking greater account of the contributive capacity of individual Member States in the system of own resources, and of examining means of correcting, for the less prosperous Member States, regressive elements existing in the present own resources system,
AGREE to annex this Protocol to the Treaty on the European Union and the Treaty on the Functioning of the European Union.
***
Structural Funds
Information about the Structural Funds can be found through the web page of the Directorate-General for Regional Policy, stating that in the period 2007-2013, cohesion policy will benefit from 35.7% of the total EU budget or 347.41 billion euros (current prices):
http://ec.europa.eu/regional_policy/policy/fonds/index_en.htm
The key objectives are presented on the web page:
http://ec.europa.eu/regional_policy/policy/object/index_en.htm
***
European Agricultural Guidance and Guarantee Fund, Guidance Section
We turn to the Structural Funds specifically mentioned by Article 159 TEC and Article 175 TFEU. In order of appearance the first one we encounter is the European Agricultural Guidance and Guarantee Fund, Guidance Section.
Instead we find the Directorate-General Agriculture and Rural Development responsible for Rural Development Policy 2007–2013, in other words outside the scope of Structural Funds managed by the Directorate-General Regional Policy.
http://ec.europa.eu/agriculture/rurdev/index_en.htm
Even the consolidated Lisbon Treaty seems to behind the times, when we see that the current legal act has created a fund with a new name:
Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (OJEU 21.10.2005 L 277/1).
The EAFRD Regulation is found here:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:277:0001:0040:EN:PDF
***
Some have argued that structural funds spending is the biggest item on the EU budget, ahead of agriculture, but that would require the “second pillar” of the common agricultural policy (CAP) to be counted as part of the structural funds.
Arguably, during the period 2007–2013 structural measures within the context of rural policy are even more tied to the administration of agricultural policy than previously.
Accordingly, my view is still that agriculture is the greatest expense in the EU budget, ahead of the structural funds, and that this will be the case in 2009.
***
European Social Fund (ESF)
Basic information about the European Social Fund (ESF) can be found here:
http://ec.europa.eu/regional_policy/funds/fse/index_en.htm
The ESF Regulation, officially Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999 (OJEU 31.7.2006 L 210/12), is available here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/fse/ce_1081(2006)_en.pdf
***
European Regional Development Fund (ERDF)
You can access information about the European Regional Development Fund (ERDF) here:
http://ec.europa.eu/regional_policy/funds/feder/index_en.htm
The ERDF Regulation, officially Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999 (OJEU 31.7.2006 L 210/1), can be found here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/feder/ce_1080(2006)_en.pdf
***
European Investment Bank
The European Investment Bank (EIB) is mentioned as one of the actors supporting the cohesion objectives.
More information can be found on the web pages of the EIB:
http://www.eib.org/
The latest version of the legal framework of the European Investment Bank, although not in force, is Protocol (No 5) on the statute of the European Investment Bank, annexed to the Lisbon Treaty TEU and TFEU (OJEU 9.5.2007 C 115/251).
***
Cohesion Fund
Among other existing Financial Instruments we find the important Cohesion Fund, designed for the poorer member states. For the 2007-2013 period the Cohesion Fund concerns Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. Spain is eligible to a phase-out fund only as its GNI per inhabitant is less than the average of the EU-15.
Introductory information about the Cohesion Fund, important for infrastructure projects and the environment, can be found here:
http://ec.europa.eu/regional_policy/funds/cf/index_en.htm
Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94 (OJEU 31.7.2006 L 210/79) can be found here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/cohesion/ce_1084(2006)_en.pdf
***
European Union Solidarity Fund (EUSF)
The Member States and countries negotiating accession can request aid from the European Union Solidarity Fund (EUSF) in the event of a major natural disaster. Basic information is found here:
http://ec.europa.eu/regional_policy/funds/solidar/solid_en.htm
The legal act setting up the EUSF is Council Regulation (EC) No 2012/2002 of 11 November 2002 establishingthe European Union Solidarity Fund (OJEC 14.11.2002 L 311/3), which is available here:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2002:311:0003:0008:EN:PDF
***
European Grouping for Territorial Cooperation (EGTC)
According to the Inforegio web page, the EGTC is a new European legal instrument designed to facilitate and promote cross-border, transnational and interregional cooperation. Unlike the structures which governed this kind of cooperation before 2007, the EGTC is a legal entity and as such, will enable regional and local authorities and other public bodies from different member states, to set up cooperation groupings with a legal personality.
Information about this new legal instrument is accessible here:
http://ec.europa.eu/regional_policy/funds/gect/index_en.htm
The establishment of the new legal instrument has required a legal instrument of its own. Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) (OJEU 31.7.2006 L 210/19) is accessible here:
http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2007/gect/ce_1082(2006)_en.pdf
***
Instrument for Pre-Accession Assistance (IPA)
If we cast our net somewhat wider than the internal cohesion of the European Union, the work can be said to commence in advance with regard to candidate countries and potential candidate countries.
From January 2007 onwards, the Instrument for Pre-Accession Assistance (IPA) replaces a series of European Union programmes and financial instruments for candidate countries or potential candidate countries, namely PHARE, PHARE CBC, ISPA, SAPARD, CARDS and the financial instrument for Turkey.
Information is found here:
http://ec.europa.eu/regional_policy/funds/ipa/index_en.htm
The basic legal instrument is Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA) (OJEU 31.7.2006 L 210/82), available here:
http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/l_210/l_21020060731en00820093.pdf
Implementing rules have been issued by the Commission, Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council Regulation (EC) No 1085/2006 establishing an instrument for pre-accession assistance (IPA) (OJEU 29.7.2007 l 170/1), published here:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:170:0001:0066:EN:PDF
***
Financial engineering
The Commission offers a web page on financial engineering with various combinations aiming at promoting development in EU regions:
http://ec.europa.eu/regional_policy/funds/2007/jjj/index_en.htm
Ralf Grahn
Subscribe to:
Posts (Atom)
Subscribe To Grahnlaw
Posts
All Comments
