Changes from report parliamentary committee draft to plenary report

The rapporteur acknowledges the improvements introduced in the 2021-2027 programming period, such as a reduced list of policy objectives, a clearer intervention logic through indicators, lighter reporting and the implementation of the single audit.

Despite these advancements, managing authorities, intermediary bodies, beneficiaries, and citizens continue to face significant administrative burdens. “In some Member States, Cohesion Policy funding is avoided in favour of less complex and less risky domestic funding”. This quote, which comes from the report of the High-Level Group on the Future of Cohesion Policy (February 2024), unveils an uncomfortable, yet currently widely spread perception of the policy on the ground. Frequent regulatory changes and the practice of gold-plating - where additional national rules are imposed on top of EU laws - have partially undermined simplification efforts. Moreover, small projects continue to bear disproportionately higher administrative burdens for beneficiaries and greater administrative costs for programme authorities compared to larger projects. Such situations negatively affect the credibility and public perception of cohesion policy, which is currently also coinciding with a programming period that has been already heavily delayed and modified at legislative level due to global geopolitical and health crises. Low visibility and a lack of knowledge of the source of cohesion-funded projects amongst citizens is another aspect that needs to be remedied in future funding cycles to improve the awareness of EU funds and their positive impact on the ground. While it is historically normal that the implementation rate of funds in the first half of any MFF, ahead of the mid-term review, is rising more slowly compared to its second half, further simplification measures are nevertheless necessary to enhance the policy’s efficiency. The EU needs a more stable way of realising cohesion policy that alleviates the pressure of such waves of intensity in implementation that are partially caused by too complex regulations and rules, as the concentration of projects in the final years of the programming cycle is problematic not only at an economic level, but also with regards to inflation and quality management.

The rapporteur emphasises that simplification measures must strike a balance between ensuring easier access to funding and protecting the EU budget. Furthermore, these efforts should always align with the core principles of cohesion policy, including shared management, the partnership principle, multi-level governance, subsidiarity, and the place-based approach.

Through this draft report, the rapporteur puts forward several recommendations. These include promoting a bottom-up approach, reducing the number of Funds, establishing an integrated IT interface for beneficiaries, and introducing a broader set of well-being indices and indicators to complement GDP. Other proposals include earmarking cohesion resources for integrated territorial development tools such as CLLD and ITI, exploring the mandatory enforcement of a revised European Code of Conduct on Partnership, reducing redundant controls and audits that duplicate national oversight for the same projects and beneficiaries, and considering direct funding for cities. Additionally, the rapporteur opposes any form of top-down centralisation of cohesion policy while acknowledging certain positive elements within the RRF.

The rapporteur believes that enhancing simplification is essential to strengthening cohesion policy as a whole. He also highlights that this policy has played a fundamental role in addressing the multi-dimensional emergencies and challenges of the past five years. In this context, the rapporteur underscores, however, the need to uphold the long-term investment, solidarity, and place-based principles that define cohesion policy. He also advocates for the continued and obligatory involvement of local and regional authorities at all stages, including programming, implementation, delivery, monitoring, and evaluation of projects.

With this draft report, the rapporteur aims to contribute meaningfully and constructively to the discussion on the future cohesion policy, particularly in light of the forthcoming Commission proposal on the Multiannual Financial Framework 2028-2034 and the accompanying legislative package of sectoral proposals.