The proposal's main objective is to address the lack of public funds available for much needed investments in Greece, and it would increase the liquidity of Greece by €2bn.
On 16 September 2015, the Council's Permanent Representatives Committee backed a Commission proposal to help Greece maximise its use of EU funds and improve liquidity for boosting growth and creating jobs. The proposal's main objective is to address the lack of public funds available for much needed investments in Greece, and to ensure that the concerned European structural and investment funds deliver their benefits as rapidly as possible on the ground. The approved measures are exceptional and designed to respond to the unique situation created by the financial crisis in Greece.
The draft regulation would improve the liquidity of Greece by around €2.0 billion. This would be achieved in the following ways:
An increase in advance payments by a total of 7 percentage points in 2015 and 2016 for the funding of the 2014-2020 period. This concerns the European social fund, the European fund for regional development, the cohesion fund and the European maritime and fisheries fund. This measure would make available an additional €1 billion in 2015 and 2016. Advance payments are made by the Commission to the member states automatically after the adoption of each operational programme to accelerate the implementation of the planned measures.
An increase in the maximum EU co-financing rates to 100% for the 2007-2013 programmes financed by the cohesion fund, the European social fund and the European fund for regional development. Greece already benefits from a higher EU co-financing for this period: in many cases the EU covers 95% of the total investment costs, rather than the usual 85%. In addition, there would be an early release of the last 5% of the remaining EU payments normally retained until the closure of the programmes for the 2007-2013 period. Together with the increase of the co-financing rates this would make available an additional €1 billion in 2015 and 2016.
The total €2 billion would be frontloaded within the 2014-2020 period and be budgetary neutral over the same period.
Full press release
© European Council
Hover over the blue highlighted
text to view the acronym meaning
over these icons for more information
No Comments for this Article