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

1. Increase in advances to programmes
2. Acceleration of intermediate payments to major
   projects
3. Simplification of system for advances paid to
   beneficiaries under state aid schemes.
4. Simplification of eligibility of expenditure
5. Facilitate management of financial engineering
   instruments.
6. 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!