COUNCIL OFBrussels, 24 June 2005
THE EUROPEAN UNIONPUBLIC
ACCESSIBLE TO THE PUBLIC CADREFIN 121
NOTE from :
to : Structural Actions Working Party
No. prev. doc. : 8772/05 FC 26 CADREFIN 101
8329/05 FC 20 CADREFIN 85 7172/05 FC 12 CADREFIN 45 6889/05 FC 11 ECOFIN 72 UEM 75 CADREFIN 37
No. Cion prop. : COM(2004) 494 final (11637/04 FC 5 CADREFIN 23) Subject :
Proposal for a Council Regulation establishing a Cohesion Fund
Proposal for a
establishing a Cohesion Fund
THE COUNCIL OF THE EUROPEAN,
Having regard to the Treaty establishing the European Community, and in particular Article 161(2)
Having regard to the proposal from the Commission1,
Having regard to the assent of the European Parliament2,
Having regard to the opinion of the European Economic and Social Committee 3,
Having regard to the opinion of the Committee of the Regions4,
(1) Regulation (EC) No [...] laying down general provisions on the European Regional
Development Fund, the European Social Fund and the Cohesion Fund1, establishes the
framework for the action of the Structural Funds and the Cohesion Fund. It fixes, in
particular, the objectives, the principles2 and the rules concerning partnership, programming,
evaluation and management. It is therefore necessary to specify the mission of the Cohesion
Fund in relation to this new framework and to the purpose assigned to it in the Treaty and to
repeal, for the sake of clarity, Council Regulation (EC) No 1164/94 of 16 May 1994
establishing the Cohesion Fund3.
(2) Trans-European network projects financed from the Cohesion Fund must fit the guidelines for
these networks adopted by the Council and the European Parliament. In order to concentrate
the efforts, priority shall be given to projects of European interest as defined in Decision No
1692/96/EC of the European Parliament and the Council of 23 July 1996 on Community
guidelines for the development of the trans-European transport network 4.
(3) The Community may, through the Cohesion Fund, contribute to action in pursuit of the
Community's environmental policy objectives specified in Article 174 of the Treaty. Under
Article 175(5) of the Treaty and without prejudice to the principle that the polluter should
pay, the Council can decide, in the case of measures on the basis of paragraph 1 of that Article
which are deemed to involve disproportionate costs for the public authorities of a Member
(4) Granting of assistance from the Cohesion Fund must take due account of the priorities of the
enlarged Union, in particular those set by the Göteborg European Council on the environment
in the interests of sustainable development.
(5) Regulation (EC) No [...] provides that eligibility of expenditure is to be established at
national level, with certain exceptions, for which it is necessary to lay down specific
provisions. The exceptions concerning the Cohesion Fund should therefore be laid down.
(6) Conditionality provisions in the granting of financial assistance will continue to apply in
conjunction with the fulfilment of the conditions of economic convergence as set out in
article 99 of the Treaty and the need for sound government finances. In this respect, Member
States having adopted the euro are to implement stability programmes and Member
States not having adopted the euro convergence programmes, as defined in Council
Regulation (EC) n° 1466/97 of 7 July 1997 on the strengthening of the surveillance of
budgetary positions and the surveillance and coordination of economic policies, leading to the
avoidance of excessive government deficits referred to in Article 104 of the Treaty. At the
same time, the conditionality provisions should not apply to the operations that had
HAS ADOPTED THIS REGULATION:
Creation and purpose of the Cohesion Fund
1.A Cohesion Fund (hereinafter: the Fund) is hereby set up for the purpose of strengthening the
economic and social [...]1 cohesion of the Community in the interests of promoting
2.The Fund is governed by the provisions of Regulation (EC) No [...] and by the provisions of
Scope of assistance2
1.Assistance from the Fund shall be given to actions in the following areas ensuring an
appropriate balance and according to the investment and infrastructure needs specific to each
b)environment [...] falling within the priorities assigned to the Community
environmental protection policy under the policy and action programme on the
In this context, the Fund may1 intervene in areas related2 to sustainable
development which clearly3 present environmental benefits, namely4 energy efficiency
and renewable energy and, in the transport sector5 outside the trans-European networks,
6rail, river, [...] sea [...] transport, intermodal transport systems and their
interoperability, management of road, sea and air traffic, clean urban transport and
2.The appropriate balance of [...] assistance should be agreed in partnership between
Member States and the Commission9.
1 DELETED suggested adding "also". DELETED suggested deleting "In this context,"
Rules on eligibility of expenditure
The following expenditure shall be ineligible:
1)VAT1, except for non recoverable VAT, when it is genuinely and definitively borne by
the beneficiaries other than non taxable persons foreseen at article 4(5), 1st
subparagraph of the 6th Council VAT Directive (States, regional and local government
authorities and other bodies governed by public law)
2)interest on debt;
3)the purchase of land for an amount exceeding 10% of the total eligible expenditure for the
4)housing, excluding energy efficiency investments for an amount not exceeding 5%3 of the
total eligible expenditure for the operation concerned4;
Conditions applying to access to Fund assistance1
1.Assistance from the Cohesion Fund shall be conditional on the following rules.
2.If the Council:
a)has decided in accordance with Article 104(6) EC that excessive government deficit
exists in a beneficiary Member State, and
b)has established in accordance with Article 104(8) EC that the Member State concerned
has not taken effective action in response to a Council Recommendation issued under
Article 104(7) EC [...],
it may decide to suspend either the totality or part of the financial assistance from the Fund
for the Member State concerned with effect from 1st January of the year following the
decision. The suspension concerns commitments,2 except for operations already approved.
3.[...] If the Council establishes that the Member State concerned has taken the necessary
corrective action, it shall decide, without delay, to lift the suspension of the financial
1.Applications 3made under Regulation (EC) No 1164/94 shall remain valid4 provided such
applications are supplemented, where necessary, so as to comply with the requirements
of this Regulation within not more than two5 months as of 1 January 20076.
1 DELETED indicated the need of more precise rules concerning the transitional period. DELETED entered a reservation on the new wording. DELETED suggested adding a new
paragraph. Nevertheless, DELETED sought for clarification as to the drafting.
If for an operation approved under Regulation 1164/94 the amounts committed until 31 December 2006 are below the maximum amount of assistance as set in a granting decision for the operation, the Member State concerned shall include continuation of such operation in an operational programme for the Cohesion Fund. The amounts for continuation of such operations shall be excluded from the amounts subject to automatic decommitment under Art. 92 of Regulation No [...].
Without prejudice to the provisions laid down in Article 106 (1) of Regulation (EC) No [laying
down general provisions on the European Regional Development Fund, the European Social
Fund and the Cohesion Fund], Regulation (EC) No 1164/94 is hereby repealed with effect from
1 January 20072.
References to Regulation (EC) No 1164/94 shall be construed as reference to this Regulation.3
The Council shall review this Regulation by 31 December 2013 at the latest in accordance with
Entry into force1
This Regulation shall enter into force on the twentieth day following that of its publication in the
Official Journal of the European Union.
It shall apply from 1 January 2007.2
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, [...].
For the Council
|COM(2004)494 - Cohesiefonds
|COM(1993)699 - Cohesiefonds
|COM(1993)699 - Bepalingen ter uitvoering van Verordening (EG) Nr. … tot oprichting van een Cohesiefonds