By Martin Banks - 31st March 2009
European regions are today facing what is acknowledged to be a crisis
Claudio Martini
The EU has been urged to relax its strict rules on regional fund expenditure in order to help Europe’s regions cope with the credit crunch.
At present, regional funds must be spent within two years of being allocated.
But, in many cases, the funds are allocated for projects which also require financial support from the private sector.
An organisation representing many of Europe’s outermost areas says that in the current economic crisis private sector backing has slowed to such an extent that regions are now having problems accessing EU funds within the two-year timeframe.
The conference of peripheral and maritime regions (CPMR) has now written to commission president José Manuel Barroso asking for a temporary relaxation in the two-year rule.
CPMR president Claudio Martini says such "emergency measures" are needed to help regions struggling in the recession.
He wrote that, "European regions are today facing what is acknowledged to be a crisis. They are confronted with calls for action on the part of SMEs which are in difficulties because of restricted access to (EU) funds."
"For this reason the CPMR is asking the commission to enable those member states and regions who wish to do so to receive co-financing for the new measures in the operational programmes as quickly as possible, without having to wait for validation by the commission’s services, along the same lines as the measure adopted for major projects."
"In addition, the CPMR also asks, as an exceptional measure, for a year-long moratorium on the N+2 rule for the year 2007.
"If agreed, this measure would apply until 31 December 2010 instead of 31 December 2009, the deadline for spending the structural funds."
The Italian goes on, "Over and above these emergency responses the commission must prepare the way for an “after-crisis” which does not reproduce the growth model of these last decades."
A CPMR spokesman explained, "EU funding for the construction of, say, a new airport, usually involves some financial input from the private sector. The problem is that this is not forthcoming now and, therefore, regional authorities are having problem accessing their EU funds with the required timeframe."
The Rennes-based CPMR represents over 150 regions, many of them in the outermost reaches of the EU.
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