The EU Recovery Plan and the proposal amending the European Regional Development Fund Regulation

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The EU Recovery Plan and the proposal amending
the European Regional Development Fund
Regulation Corinne Hermant-de Callataÿ European
Commission, DG Regional Policy REGIO C.2
Territorial cohesion, urban development
"Decent housing for a social Europe" Brussels
15/04/09
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EU Recovery Plan

• Launched by the Commission on 26 November
  2008,COM(2008) 800 final
• Endorsed by the European Council on 11-12
  December 2008
• Based on two main elements
• Short-term measures to boost demand, save jobs
  and help restore confidence
• Smart investments for higher growth and
  sustainable prosperity in the long-term

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EU Recovery Plan

• Proposed measures therefore include
• 1. Short-term measures, e.g.
• Accelerating payments under structural and social
  funds
• Simplifying criteria for ESF
• Stepping up advance payments
• 2. Long-term measures, e.g.
• European green cars initiative
• European energy-efficient buildings initiative
• Factories of the future initiative

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EU Recovery Plan

• Emphasis on smart investments in the priority
  areas of the Lisbon Strategy
• people, business, infrastructure and energy,
  research and innovation
• In particular
• Infrastructure and energy efficiency to boost
  the construction industry

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EU Recovery Plan Actions (Priority 6)

• Improve energy efficiency in buildings P6
• Quick adoption of proposal for a recast of the
  Energy Performance of Buildings Directive, 13
  November 2008, COM(2008) 780
• Re-programming of structural funds OPs
• Launch a 2020 fund for energy, climate change and
  infrastructure (EC, EIB, some national
  development banks)
• Proposal for reduced VAT rates for green products
  and services
• Proposal for products with a high potential for
  energy savings
• MS/Industry Innovative financing models (e.g.
  financing refurbishments by repayments based on
  energy savings)
• Proposal to launch a new partnership between
  public and private sectors to boost the
  construction industry
• Regulatory and standardisation components,
  procurement network of regional and local
  authorities
• Promoting green technologies and energy-efficient
  systems in new and renovated buildings

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In parallel to exploring the possibilities under
the existing legal framework

• Adoption by the Commission, on 3 December 2008,
  of a proposal for amendments to the legislative
  framework
• Such amendments should facilitate the
  mobilisation of European resources ..
• .. And ensure maximum efficiency to our common
  goal for more growth and jobs.

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European Parliament legislative resolution of 2
April 2009

• Approval of the Commission proposal, as amended,
  on the proposal for a regulation of the European
  Parliament and of the Council amending Regulation
  (EC) No 1080/2006 on the European Regional
  Development Fund as regards
• the eligibility of energy efficiency and
  renewable energy investments in housing
• the extension of the types of costs eligible for
  a contribution from the ERDF.

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Proposed amendments relate to 6 areas

• Increase in advances to programmes
• Acceleration of intermediate payments to major
  projects
• Simplification of system for advances paid to
  beneficiaries under state aid schemes.
• Simplification of eligibility of expenditure
• Facilitate management of financial engineering
  instruments.
• Devote a greater share to energy-efficiency
  investments.

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Devote a greater share to energy-efficiency
investments (1)

• An amendment to the current regulatory framework
  for the European Regional development Fund is
  proposed in order to make eligible energy
  efficiency improvements and renewable energy
  interventions in all Member States
• Up to an amount of 4 of the total ERDF
  allocation with the view to support social
  cohesion (currently up to 2 or 3 of the ERDF
  allocation in EU-12)
• Mobilisation of up to 8 billion ERDF (which
  corresponds to the ceiling of 4 of ERDF
  allocation)

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Devote a greater share to energy-efficiency
investments (2)

• Energy efficiency intervention implemented or in
  course of implementation under Article 7 (2) of
  the current ERDF Regulation are not affected
• Other interventions (than the energy
  efficiency- related ones) continue to be
  governed by the current housing provisions
• Not necessarily leading to the revision of the
  Operational Programme
• Expenditure under this new provision should be
  earmarked

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Devote a greater share to energy-efficiency
investments (3)

• The new legislative provision a possibility, not
  an obligation
• These investments should be embedded into public
  schemes with a clear strategy, aim, method and
  monitoring
• Local actors (e.g. municipalities, citizens
  organisations) could play an active rolein the
  implementation of these interventions
• Definition of the eligible categories of housing
  in order to promote social cohesion is up to MS

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Observations

• Importance of energy efficiency of the buildings,
  but linking to/ and ensuring coherence with/
• general elements which ensure the investment's
  sustainability (with respect to occupation and
  obsolescence),
• Importance of the other investments which are
  made in the environment of houses public spaces,
  shopping areas, schools,  public buildings,
  etc.... As well as social and economic
  investments.
• Modernising houses is a "necessary but not
  sufficient" condition to guarantee the quality of
  inhabitants' life 

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A reflexion group

• A reflection group is already working in order to
  identify the provisions of the SF regulations
  which can be simplified.
• We have received some suggestions from a number
  of Member States, which are under examination.
• It is too early at this stage to define the
  content of the future proposals.

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• Thank you very much for your attention!