Projecten regionale ontwikkeling vastgelopen door gebrek aan investeringen (en)
Stalled regional development projects that crisis-hit countries need to spur their recovery, but to which banks will not lend because they lack liquidity or judge them too risky, could win fresh funding if public and private investors were to share the risk, under a proposal backed by the Regional Development Committee on Tuesday.
"Europe, and in particular the economies in distress need growth. The European institutions should spare no effort to facilitate the use of structural funds for growth and job creation. The risk-sharing facility can increase the involvement of the private sector in funding important projects, generating employment and growth," said Danuta Hübner i (EPP, PL) after the vote.
The committee backed the proposal by 36 votes to 5, with 2 abstentions.
Encouraging private investors
Under the proposal, Member States benefitting from EU macroeconomic assistance would be able to ask for part of their allocation of EU regional funding to be transferred to the European Commission for use in a risk-sharing scheme.
The Commission would then conclude a risk-sharing partnership with the European Investment Bank (EIB) or another financial institution willing to lend to project sponsors and banks. This should in turn encourage private investors to back projects partly funded with contributions from the European Regional Development Fund (ERDF) and Cohesion Fund (CF).
Greece in the spotlight
The proposal, which still needs to be endorsed by Parliament as a whole, says that only countries worst hit by the crisis and benefitting from EU macroeconomic support (currently Ireland, Greece, Portugal and Romania,) would be eligible.
Member States would be entitled to apply for risk-sharing only whilst they are receiving EU macroeconomic assistance. Greece has already declared its interest, specifically to allow its highway toll concessions projects to go on.
Clear priority for cohesion projects
"Revenue-generating and state aid projects already included in the operational programmes should be given priority," Ms Hübner said.
Member States wishing to benefit from a risk-sharing instrument must make a written request to the Commission by 31 August 2013, specifying the programmes and projects to be covered. The Commission should then decide within 4 months on the necessary terms and conditions.
No impact on overall 2007-2013 allocation
The EU's financial contribution to the risk-sharing instrument must not exceed 10% of the total 2007-2013 ERDF and CF allocation to the country concerned. Risk-sharing will not result in any change in the overall allocation under cohesion funding for 2007-2013 and there will be no contingent liabilities for the EU budget beyond allocations made to the risk sharing instrument, MEPs say. The risk shared should be at least 1.5 times the size of the EU contribution, Regional Development Committee members suggest.
Next steps
Parliament is to give its final approval to the scheme in the plenary vote in April. MEPs aim to approve the necessary amendment to regional policy funding rules at the first reading, so that the instruments can be be set up as fast as possible.