Further changes needed to make Cohesion spending more results-oriented

​Changes intended to improve the way Cohesion spending is managed are innovative but not yet effective, according to a new report from the European Court of Auditors. The ways in which minimum requirements are laid down and performance reviews are conducted need to be reinforced, say the auditors.

Cohesion spending has a significant impact on the economies of many EU Member States. Spending from the European Regional Development Fund, the Cohesion Fund and the European Social Fund between them will amount to almost €350 billion in the period between 2014 and 2020. In nine Member States, regional development and Cohesion spending accounts for more than 30% of all government capital expenditure, and in four countries - Hungary, Lithuania, Slovakia and Latvia - it represents over half of all public investment.

The auditors examined two new requirements introduced for the period 2014-2020 to make Cohesion spending more results-oriented: pre-conditions and the performance reserve. Pre-conditions (known as “ex ante conditionalities”) set requirements that must be met before a programme is launched; the performance reserve requires most programmes to make 6% of funding for Member States subject to a performance review by 2019.

“Making the best use of Cohesion funds is very important for many EU Member States,” said Ladislav Balko, the Member of the European Court of Auditors responsible for the report. “But to have their desired impact these new requirements will need changes as well as commitment and ownership by the Member States”.