EN EN EXPLANATORY MEMORANDUM 1. CONTEXT OF THE ...

[pic]

EXPLANATORY MEMORANDUM


1. CONTEXT OF THE PROPOSAL


The Commission presented its proposals for a regulation laying down common
provisions on the ERDF, the ESF, the CF, the EAFRD and the EMFF and general
provisions on cohesion policy funds on 6 October 2011 (COM(2011) 615
final).


The initial Commission's proposal for the EMFF Regulation aligned the
management and control system for the EMFF with the arrangements proposed
for the EAFRD. This was proposed mainly for the reason that the authorities
managing the EAFRD and EMFF are often the same and would benefit from
harmonised arrangements for these two funds.


During the examination of the EMFF proposal in the Fisheries Working Group
in the Council, a number of Member States have expressed reservations as
regards the shift to the system proposed by the Commission for management
and control and for financial management. In the previous (2000-2006) and
the current (2007-2013) programming periods the delivery system of the EMFF
was aligned with arrangements set up under cohesion policy and Member
States consider that the highest degree of continuity should be ensured.
They have expressed a view that continuing with such arrangements would
enable to make the best use of the expertise gained by national authorities
currently involved in the management of EU funds for fisheries.


Although a majority of Member States have indicated that they prefer
alignment of the EMFF with the delivery system for cohesion policy, they
have also highlighted the need to take into account the principle of
proportionality (CPR Article 4(5)). The fisheries operational programmes,
in most of the cases, are smaller than those under cohesion policy and also
have specific features to ensure that the EMFF contributes to the reform of
the Common Fisheries Policy.


In order to facilitate the already on-going negotiations in the Council and
the European Parliament the Commission proposes a simultaneous amendment of
the Commission proposals for the Common Provisions Regulation and of the
EMFF Regulation to ensure simple and streamlined integration of the EMFF
into an already existing set of rules for cohesion policy.


A close alignment of EMFF delivery systems with those proposed for cohesion
policy in the manner proposed will contribute to harmonisation and
consistency of rules across these different Funds (ERDF, ESF, CF and EMFF).
It enables harnessing the experience attained in previous programming
periods and facilitates a smooth transition from one programming period to
the next.


2. RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT
ASSESSMENTS


The Commission proposal amending the Common Provisions Regulation and the
EMFF Regulation has been preceded by throrough discussions on the delivery
arrangements of the EMFF in the Fisheries Working Party of the Council and
bilateral contacts with the Member States.


An Impact Assessment has been carried out for the original legislative
proposals.


3. LEGAL ELEMENTS OF THE PROPOSAL


The proposal involves a parallel amendment of the Commission proposals for
the Common Provisions Regulation and of the EMFF Regulation:


. the EMFF is integrated in the relevant provisions in the Common
Provisions Regulation which were initially specific to cohesion
policy, creating a new Part Four of the Common Provisions Regulation
which applies to cohesion policy and to the EMFF;


. Respective provisions (which correspond to the delivery arrangements
of the EAFRD or overlap with the articles of the Common Provisions
Regulations in its amended form) are deleted from the EMFF Regulation
and appropriate references to the CPR are introduced in the EMFF
Regulation, where necessary.


Recitals and definitions are aligned with the changes to the articles and
amendment of the structure of the regulations. The terminology used in the
new Part Four is adjusted to accommodate the specificities of the EMFF and
in certain instances it is clarified that the Fund-specific rules under the
EMFF may set out complementary rules.


4. BUDGETARY IMPLICATIONS


The amended proposal will have no budgetary implications. The availability
of new data and macro-economic forecasts as well as the accession of the
Republic of Croatia results however in changes of the cohesion envelope.


These modifications are without prejudice to the on-going negotiations on
the MFF Regulation and to the Financial Regulation.


5. SUMMARY OF AMENDMENTS


As regards the Common Provisions Regulation, the amendment concerns
recitals 3, 75, 78, 80, 84 and 87. It also introduces changes in Article 1
and Article 3 to clearly set out the applicability of each Part of the
Common Provisions Regulation as regards each of the Funds (ERDF, ESF, CF,
EMFF and EAFRD). It has required limited adjustment of definitions set out
under paragraphs (5), (7), (25) and (26) of Article 2 in order to replace
references to Part Three with references to Part Four.


It includes amendments to Articles 55 (7), 64 (6), 74 (1), 112 (3), 113
(5), 114 (3) (b) and (g), 117 (4), 120, 121 (1), 124, 126 (4), 128, 130
(1), 131 (1), 133(1), 134 (1), 135, 136, 137 and 140 (1).


As regards the EMFF Regulation, the amendment concerns recitals 86, 89,
101, 103, 104 and deletion of recitals 91, 93, 94 and 97. It includes
amendments to Articles 3, 12, 14, 20, 24, 25, 28, 33, 37, 38, 39, 45, 46,
54, 56, 61, 62, 63, 64, 67, 75, 78, 92, 94, 95, 102, 103, 105, 108, 117,
118, 119, 120, 122, 126, 128, 129, 131, 132, 133, 134, 135, 1369, 137, 138,
139, 140, 141, 142,143, 144, 145, 146, 147, 148, 149, 150,151, 152, 153,
154 and deletion of Articles 96, 97, 98, 99, 100, 101, 104, 106, 107, 109,
110, 111, 112, 113, 114, 115, 116, 121, 123, 124, 125, 127 and 130.


For clarity reasons, this amending proposal is presented in a consolidated
form, including all the amendments to the Common Provisions Regulation
adopted by the Commission so far, i.e. COM(2012) 496 of 11 September 2012
and COM(2013) 146 of 12 March 2013. However, only the modifications
proposed through this amending proposal are presented in a highlighted
format.



2011/0276 (COD)

Amended proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

laying down common provisions on the European Regional Development Fund,
the European Social Fund, the Cohesion Fund, the European Agricultural Fund
for Rural Development and the European Maritime and Fisheries Fund covered
by the Common Strategic Framework and laying down general provisions on the
European Regional Development Fund, the European Social Fund and the
Cohesion Fund and repealing Council Regulation (EC) No 1083/2006


THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,


Having regard to the Treaty on the Functioning of the European Union, and
in particular Article 177 thereof,


Having regard to the proposal from the European Commission,


After transmission of the draft legislative act to the national
Parliaments,


Having regard to the opinion of the European Economic and Social
Committee[1],


Having regard to the opinion of the Committee of the Regions[2],


Having regard to the opinion of the Court of Auditors[3],


Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) Article 174 of the Treaty provides that, in order to strengthen its
economic, social and territorial cohesion, the Union shall aim at reducing
disparities between the levels of development of the various regions and
the backwardness of the least favoured regions or islands, particular rural
areas, areas affected by industrial transition, and regions which suffer
from severe and permanent natural or demographic handicaps. Article 175 of
the Treaty requires that the Union would support the achievement of these
objectives by action it takes through the European Agricultural Guidance
and Guarantee Fund, Guidance Section, the European Social Fund, the
European Regional Development Fund, the European Investment Bank and other
instruments.


(2) In line with the conclusions of the European Council of 17 June 2010,
whereby the Union strategy for smart, sustainable and inclusive growth was
adopted, the Union and Member States should implement the delivery of
smart, sustainable and inclusive growth, while promoting harmonious
development of the Union and reducing regional disparities.


(3) In order to improve coordination and harmonise implementation of the
Funds providing support under the cohesion policy, namely the European
Regional Development Fund (ERDF), the European Social Fund (ESF) and the
Cohesion Fund (CF), with the Funds for rural development, namely the
European Agricultural Fund for Rural Development (EAFRD), and for the
maritime and fisheries sector, namely the European Maritime and Fisheries
Fund (EMFF), common provisions should be established for all these Funds
(the 'CSF Funds'). In addition this Regulation contains provisions which
are common for the ERDF, the ESF and the CF, but do not apply to the EAFRD
and the EMFF as well as provisions which are common to the ERDF, the ESF,
the CF and the EMFF, but do not apply to the EAFRD. Due to the
particularities that exist for each CSF Fund, specific rules applicable to
each CSF Fund and to the European territorial cooperation goal under the
ERDF should be specified in separate regulations.


(4) As regards the Common Agricultural Policy (CAP), significant
synergies have already been obtained by harmonising and aligning management
and