01. 07.10:
Simplified funding management finalised
The financial crisis has caused widespread problems with the provision of 'match funding' from national public finances to complement promised EU Structural Funds. In many cases this has meant severe delays in programmes' spending to schedule which if left unaddressed would ultimately lead to the loss of EU support. In response the Commission completed the process of gaining European Parliament and Council agreement in June to bring forward a set of new measures to simplify management rules in order to facilitate access to funding and to accelerate investment spending.
The agreed simplification measures as applicable to the Regional Operational Programmes, European Social Fund (national Human Capital Programme) and various Interreg programmes are:
* Postponing 'N+2 decommitment' rules - whereby funds committed in 2007 would normally have had to be spent by 2009 or else be automatically returned to the EU budge - in order to allow for longer-term perspectives;
* Allowing major projects to be financed by more than one programme: e.g. across/between both Irish regions on a shared rather than as separate operations;
* A simplified procedure for the revision of programmes to allow for quicker adaptation to the current challenges;
* Enhancing the use of financial engineering approaches, i.e. using funds to set up loan schemes to boost spending on housing energy issues;
* Simplifying the rules on 'revenue-generating' projects;
* Extending the cost threshold below which Member States may proceed with major projects without seeking Commission approval - thereby allowing for speedier start-ups;
* Restricting the obligation to maintain investments beyond the funding period.
These modifications came into effect on 25 June and are intended to complement the large number of other initiatives which have been taken since the beginning of the crisis under the European Economic Recovery Plan.
Further details
