The EU Recovery Plan and the proposal amending the European Regional Development Fund Regulation

1. The EU Recovery Plan and the proposal amending the European Regional Development Fund Regulation Corinne Hermant-de Callataÿ European Commission, DG Regional Policy REGIO C.2 – Territorial cohesion, urban development "Decent housing for a social Europe"– Brussels 15/04/09

2. EU Recovery Plan • Launched by the Commission on 26 November 2008,COM(2008) 800 final • Endorsed by the European Council on 11-12 December 2008 • Based on two main elements: • Short-term measures to boost demand, save jobs and help restore confidence • “Smart investments” for higher growth and sustainable prosperity in the long-term

3. EU Recovery Plan Proposed measures therefore include: 1. Short-term measures, e.g. • Accelerating payments under structural and social funds • Simplifying criteria for ESF • Stepping up advance payments 2. Long-term measures, e.g. • European green cars initiative • European energy-efficient buildings initiative • Factories of the future initiative

4. EU Recovery Plan • Emphasis on “smart investments” in the priority areas of the Lisbon Strategy • people, business, infrastructure and energy, research and innovation • In particular: • Infrastructure and energy efficiencyto boost the construction industry

5. EU Recovery Plan – Actions (Priority 6) • Improve energy efficiency in buildings P6 • Quick adoption of proposal for a recast of the Energy Performance of Buildings Directive, 13 November 2008, COM(2008) 780 • Re-programming of structural funds OPs • Launch a 2020 fund for energy, climate change and infrastructure (EC, EIB, some national development banks) • Proposal for reduced VAT rates for green products and services • Proposal for products with a high potential for energy savings • MS/Industry: Innovative financing models (e.g. financing refurbishments by repayments based on energy savings) • Proposal to launch a new partnership between public and private sectors to boost the construction industry • Regulatory and standardisation components, procurement network of regional and local authorities • Promoting green technologies and energy-efficient systems in new and renovated buildings

6. In parallel to exploring the possibilities under the existing legal framework • Adoption by the Commission, on 3 December 2008, of a proposal for amendments to the legislative framework • Such amendments should facilitate the mobilisation of European resources .. • .. And ensure maximum efficiency to our common goal for more growth and jobs.

7. European Parliament legislative resolution of 2 April 2009 • Approval of the Commission proposal, as amended, on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 1080/2006 on the European Regional Development Fund as regards: • the eligibility of energy efficiency and renewable energy investments in housing • the extension of the types of costs eligible for a contribution from the ERDF.

8. Proposed amendments relate to 6 areas: • Increase in advances to programmes • Acceleration of intermediate payments to major projects • Simplification of system for advances paid to beneficiaries under state aid schemes. • Simplification of eligibility of expenditure • Facilitate management of financial engineering instruments. • Devote a greater share to energy-efficiency investments.

9. “Devote a greater share to energy-efficiency investments” (1) An amendment to the current regulatory framework for the European Regional development Fund is proposed in order to make eligible energy efficiency improvements and renewable energy interventions in all Member States • Up to an amount of 4% of the total ERDF allocation with the view to support social cohesion (currently up to 2 or 3% of the ERDF allocation in EU-12) • Mobilisation of up to € 8 billion ERDF (which corresponds to the ceiling of 4% of ERDF allocation)

10. “Devote a greater share to energy-efficiency investments” (2) • Energy efficiency intervention implemented or in course of implementation under Article 7 (2) of the current ERDF Regulation are not affected • Other interventions (than the “energy efficiency”- related ones) continue to be governed by the current “housing” provisions • Not necessarily leading to the revision of the Operational Programme • Expenditure under this new provision should be earmarked

11. “Devote a greater share to energy-efficiency investments” (3) • The new legislative provision: a possibility, not an obligation • These investments should be embedded into public schemes with a clear strategy, aim, method and monitoring • Local actors (e.g. municipalities, citizens organisations) could play an active rolein the implementation of these interventions • Definition of the eligible categories of housing in order to promote “social cohesion” is up to MS

12. Observations • Importance of energy efficiency of the buildings, but linking to/ and ensuring coherence with/ • general elements which ensure the investment's sustainability (with respect to occupation and obsolescence), • Importance of the other investments which are made in the environment of houses: public spaces, shopping areas, schools,  public buildings, etc.... As well as social and economic investments. • Modernising houses is a "necessary but not sufficient" condition to guarantee the quality of inhabitants' life 

13. A reflexion group A reflection group is already working in order to identify the provisions of the SF regulations which can be simplified. We have received some suggestions from a number of Member States, which are under examination. It is too early at this stage to define the content of the future proposals.

14. Thank you very much for your attention!