Regional policy: MEPs assess impact of emergency funding on Greek economy
Specific financial measures agreed in 2015 allowed projects in Greece to be successfully completed, according to the Regional Development Committee. MEPs call for better quality assessments.
The report recalls that huge reductions in per capita GDP suffered by all Greek regions in the wake of the economic and financial crisis, coupled with liquidity problems, lack of public resources and the unprecedented refugee crisis, put many projects on hold due to absorption conditions which could no longer be met.
Parliament and Council therefore agreed in 2016 on targeted financial measures for Greece, raising the co-financing rate with the aim of allowing regions to absorb Cohesion Policy funds for the programming period 2007-2013, but also to launch projects in the current period (2014-2020), and in particular 2015 and 2016.
A breath of fresh air for Greece’ economy in a period of insufficient liquidity
In particular, the application of the special regulation (2015/1839) prevented programmes and a significant number of projects from being closed down, by increasing the EU co-financing rate to an unprecedented 100% for the programming period 2007-2013.
In order to start implementing projects under the current programming period (2014-2020), pre-financing from the cohesion funds also increased, with Greece receiving in 2015 and 2016 additional funds of 2 billion euros, from which the whole of the Greek economy benefitted significantly in a period of insufficient liquidity.
Need for efficiency and quality in investment
However, such special measures can only be justified in "exceptional circumstances", MEPs stress. They point out that EU cohesion policy must "add value to public and private funding" and not "detract from the effectiveness and investment quality “. MEPs also call on the EU Commission to inform Parliament of the results of the previous financial period (2007-2013), which are expected to be available in the first half of 2018, while assessing the implementation of the regulation.
The Rapporteur for the own-initiative report is Pascal Arimont (EPP, Belgium). The draft resolution was adopted with 36 votes in favour, none against and 2 abstentions and will be submitted to a plenary vote after the summer break.
Background information
The amounts paid under Regulation (2015/1839) were allocated to the implementation of projects in Greece in the following sectors: transport, environment, tourism, culture, urban regeneration and rural reconstruction, social infrastructure, information society and actions for the development of human resources. Only 79 projects are yet to be completed out of more than 50 000, according to the European Commission.
Those projects have been funded through 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.
Contacts:
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Constantinos TSOUTSOPLIDES
Press officer -
Natalie Kate KONTOULIS