Council and Parliament reach provisional political agreement on new framework for regional investment

09 2020

Council and Parliament reach provisional political agreement on new framework for regional investment

View 2.4K

word 513 read time 2 minutes, 33 Seconds

The German Presidency of the Council and the European Parliament struck a political deal on two structural funds that together will account for over €240 billion of EU investment in the 2021-2027 period.

The European Regional Development Fund (ERDF) and the Cohesion Fund are part of the next multiannual financial framework, which needs to be adopted before the fund-specific legislation can be enacted.

While the ERDF covers all regions across Europe, the Cohesion Fund is aimed at member states whose per capita GNI is less than 90% of the EU average.

The draft regulation agreed by the co-legislators simplifies the rules for the two funds and sets the scope of their support over the next seven years.

The twin transition

All member states will use ERDF resources to contribute to the digital and green transition by financing projects in a wide variety of areas, such as research and innovation, digitalisation of services, energy efficiency, renewable energy, circular economy and biodiversity.

At the same time, in the spirit of solidarity and to help redress regional imbalances, member states and regions with higher per capita GNI will have to dedicate a substantial share of their national envelopes to smart economic transformation and green investment. Less prosperous member states and regions will be able to invest more in improving access to quality employment and quality education and training, as well as in the social inclusion of disadvantaged groups.

Climate change mitigation

Both the #ERDF and the Cohesion Fund will contribute to reducing greenhouse gas emissions in line with the EU goal of climate neutrality by 2050.

The co-legislators agreed to a limited exception for the funding of projects linked to natural gas for climate mitigation purposes. Member states can invest in natural gas to replace coal-based heating systems and in the distribution and transport of natural gas as a bridging technology and substitute for coal.

Building resilience

As a result of the COVID-19 pandemic, new provisions were included to strengthen disaster resilience.

As small and medium-sized enterprises (SMEs) are the backbone of the EU's economy, the co-legislators decided that the ERDF should support competitiveness of SMEs and job creation in SMEs, including by productive investments.

Another new provision allows for investment in medical equipment and supplies in addition to infrastructure to boost the resilience of health services. This means that member states will be able to receive funding not only to build a new hospital, for example, but also to purchase protective equipment, ventilators and other necessary medical supplies.

Sustainable Urban Development will play an enhanced role due to higher support to make cities greener, climate-friendly and more inclusive. Since tourism and culture have been particularly badly hit by the pandemic, member states will be able to increase support for these sectors and exploit their potential for economic recovery.

Funding will also be available for ICT equipment and connectivity for online education and training.

Next steps

The full text of the draft regulation will be finalised by the co-legislators in the first months of 2021 under the Portuguese presidency.

Source by consiliumeuropeanunion

LSNN is an independent editor which relies on reader support. We disclose the reality of the facts, after careful observations of the contents rigorously taken from direct sources, we work in the direction of freedom of expression and for human rights , in an oppressed society that struggles more and more in differentiating. Collecting contributions allows us to continue giving reliable information that takes many hours of work. LSNN is in continuous development and offers its own platform, to give space to authors, who fully exploit its potential. Your help is also needed now more than ever!

In a world, where disinformation is the main strategy, adopted to be able to act sometimes to the detriment of human rights by increasingly reducing freedom of expression , You can make a difference by helping us to keep disclosure alive. This project was born in June 1999 and has become a real mission, which we carry out with dedication and always independently "this is a fact: we have never made use of funds or contributions of any kind, we have always self-financed every single operation and dissemination project ". Give your hard-earned cash to sites or channels that change flags every time the wind blows , LSNN is proof that you don't change flags you were born for! We have seen the birth of realities that die after a few months at most after two years. Those who continue in the nurturing reality of which there is no history, in some way contribute in taking more and more freedom of expression from people who, like You , have decided and want to live in a more ethical world, in which existing is not a right to be conquered, L or it is because you already exist and were born with these rights! The ability to distinguish and decide intelligently is a fact, which allows us to continue . An important fact is the time that «LSNN takes» and it is remarkable! Countless hours in source research and control, development, security, public relations, is the foundation of our basic and day-to-day tasks. We do not schedule releases and publications, everything happens spontaneously and at all hours of the day or night, in the instant in which the single author or whoever writes or curates the contents makes them public. LSNN has made this popular project pure love, in the direction of the right of expression and always on the side of human rights. Thanks, contribute now click here this is the wallet to contribute

Similar Articles / Council ...nvestment
from: ladysilvia
by: UN