(1)

Article 176 of the Treaty on the Functioning of the European Union (‘TFEU’) provides that the European Regional Development Fund (‘ERDF’) is intended to help to redress the main regional imbalances in the Union. Under that Article and the second and third paragraphs of Article 174 of the TFEU, the ERDF is to contribute to reducing disparities between the levels of development of the various regions and to reducing the backwardness of the least favoured regions, among which particular attention is to be paid to regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and island, cross-border and mountain regions.

(2)

The Cohesion Fund was set up in order to contribute to the overall objective of strengthening economic, social and territorial cohesion of the Union by providing financial contributions in the fields of environment and trans-European networks in the area of transport infrastructure (‘TEN-T’), as set out in Regulation (EU) No 1315/2013 of the European Parliament and of the Council (4).

(3)

Regulation (EU) 2018/XXX of the European Parliament and of the Council [new CPR] (5) sets out common rules applicable to various funds including the European Regional Development Fund (‘ERDF’), the European Social Fund Plus (‘ESF+’), the Cohesion Fund, the European Agricultural Fund for Rural Development (EAFRD), , the European Maritime and Fisheries Fund (‘EMFF’), the Asylum and Migration Fund (‘AMIF’), the Internal Security Fund (‘ISF’) and the Border Management and Visa Instrument (‘BMVI’) which operate under a common framework (‘the Funds’). [Am. 1]

(3a)

Member States and the Commission shall ensure the coordination, complementarity and coherence between the European Regional Development Fund (ERDF), the Cohesion Fund (CF), the European Social Development Fund+ (ESF+), the European Maritime and Fisheries Fund (EMFF) and the European Fund for Agricultural Development (EAFRD), so that they can complement each other where this is beneficial for creating successful projects. [Am. 2]

(4)

In order to simplify the rules applicable to both the ERDF and the Cohesion Fund for the 2014-2020 programming period, a single Regulation should set out the applicable rules covering both funds.

(5)

Horizontal principles as set out in Article 3 of the Treaty on European Union (‘TEU’) and in Article 10 of the TFEU, including principles of subsidiarity and proportionality as set out in Article 5 of the TEU, should be respected in the implementation of the ERDF and the Cohesion Fund, taking into account the Charter of Fundamental Rights of the European Union. Member States should also respect the obligations of the UN Convention on the and the European Pillar of Social Rights of Persons with Disabilities and ensure accessibility in line with its article 9 and in accordance with the Union law harmonising accessibility requirements for products and services. Member States and the Commission should aim at eliminating social and income inequalities , at furthering the fight against poverty, at the preservation and at promoting equality between men and women and integrating the gender perspective, as well as at the creation of quality jobs with attendant rights and at ensuring that the ERDF and the Cohesion Fund promote equal opportunities for all, combating discrimination based on gender, sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The Funds should also promote the transition from institutional care to family and community-based care, in particular for those who face multiple discrimination. The Funds should not support actions that contribute to any form of segregation. The objectives of the Investments under ERDF and the Cohesion Fund , in synergy with ESF+, should be pursued in the framework of sustainable development and the Union's promotion of the aim of preserving, protecting and improving the contribute to promoting social inclusion and fighting poverty, and to raising citizens’ quality of the environment as set out in Articles 11 and 191(1) of the TFEU, taking into account the polluter pays principle. In order to protect the integrity life in line with the obligations of the internal market, operations benefitting undertakings shall comply with State aid rules as set out in Articles 107 and 108 of the TFEU UN Convention on the Rights of Persons with Disabilities and the UN Convention on the Rights of the Child (UNCRC) to contribute to children’s rights . [Am. 3]

(6)

It is necessary to cover provisions for the ERDF for its support both to the Investment for jobs and growth goal and the European territorial cooperation goal (Interreg) (‘ETC/Interreg’).

(7)

In order to identify the type of activities which can be supported by the ERDF and the Cohesion Fund, specific policy objectives for providing support from those funds should be laid down to ensure that they contribute to one or more of common policy objectives set out in Article 4(1) of Regulation (EU) 2018/xxx [new CPR] .

(8)

In an increasingly interconnected world and in view of the internal and external demographic and migration dynamics, it is clear that Union migration policy requires a common approach that relies on the synergies and complementarities of the different funding instruments. The ERDF must pay more specific attention to demographic change as a key challenge and priority area in devising and implementing programmes. In order to ensure coherent, strong and consistent support for solidarity and responsibility-sharing responsibility as well as sharing efforts between Member States in managing migration, the ERDF should provide support to facilitate the long-term cohesion policy could contribute to integration of processes of refugees and migrants under international protection by adopting an approach aimed at protecting the dignity and rights of them, not least in view of the mutually-reinforcing relationship between integration and local economic growth, especially by providing infrastructure support to cities and local authorities involved in implementing integration policies . [Am. 4]

(9)

In order to support the efforts of Member States and regions in reducing disparities between levels of development and harmonise different situations of EU regions, facing up to social disparities, new challenges and ensuring inclusive societies and a high level of security for their citizens as well as the prevention of marginalisation and radicalisation, while relying on the synergies and complementarities with other Union policies, investments under the ERDF should contribute to security in areas where there is a need to ensure safe , modern, accessible and secure public spaces and critical infrastructure, such as communication, public transport, and energy and universal, high-quality public services which are vital to address regional and social disparities, promote social cohesion and regional development and encourage enterprises and people to stay in their local area . [Am. 5]

(10)

In addition, investments under the ERDF should contribute to the development of a comprehensive high-speed digital infrastructure network, throughout the Union, including in rural areas where it is a vital contributor to small and medium-sized enterprises (SMEs), and to promoting clean pollution-free and sustainable multimodal urban mobility with a focus on walking, cycling, public transport and shared mobility. [Am. 6]

(10a)

Many of the greatest challenges in Europe increasingly affect marginalised Roma communities, who often live in the most disadvantaged micro-regions which lack safe and accessible drinking water, sewage, electricity, and which do not enjoy transportation possibilities, digital connectivity, renewable energy systems or disaster resilience. Therefore, ERDF-CF shall contribute to improving the living conditions of Roma and fulfilling their true potential as EU citizens, and Member States shall safeguard that the benefits of all the five policy objectives of ERDF-CF will reach the Roma as well. [Am. 7]

(11)

As a result of the overall aim of the Cohesion Fund provided for in the TFEU, it is necessary to set out and limit the specific objectives to which the Cohesion Fund should support.

(12)

In order to contribute to an appropriate governance, enforcement, cross-border cooperation and spread of best practices and innovations in the field of smart specialization and circular economy improve the overall administrative capacity of the institutions and governance in the Member States , including at the regional and local levels on the principles of multilevel governance, implementing the programmes under the Investment for jobs and growth goal, it is necessary to enable supporting promote administrative reinforcement measures under all of the of a structural nature in support of all specific objectives. Being based on measurable objectives and notified to citizens and businesses as a means of simplifying and reducing the administrative burden imposed on beneficiaries and managing authorities, it is possible for these measures to strike the right balance between the result-orientation of the policy and the level of checks and controls. [Am. 8]

(13)

In order to encourage and boost cooperation measures, within programmes implemented under the Investment for jobs and growth goal, it is necessary to enhance cooperation measures with partners including those at local and regional level within a given Member State or between different Member States in relation to support provided under all of the specific objectives. Such enhanced cooperation is additional to the cooperation under ETC/Interreg and should in particular support cooperation among structured partnerships with a view to implementing regional strategies as referred to in the Communication from the Commission ‘Strengthening Innovation in Europe's Regions: Strategies for resilient, inclusive and sustainable growth’ (6). Partners may therefore come from any region in the Union, but may also include cross-border regions and regions which are all covered by European Groupings of Territorial Cooperation, a macro-regional or sea-basin strategy or a combination of the two. [Am. 9]

(13a)

The future cohesion policy may take adequate consideration of and provide support to the regions of the Union that are most impacted by the consequences of the United Kingdom’s exit from the Union, in particular those that will, as a result, find themselves situated on external sea or land borders of the Union; [Am. 10]

(14)

The objectives of the ERDF and the Cohesion Fund should be pursued in the framework of sustainable development, notably the highly importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement, 2030 Agenda of the United Nations and the UN Sustainable Development Goals as well as and the Union's promotion of the aim of preserving, protecting and improving the quality of the environment as set out in Articles 11 and 191(1) of the TFEU, taking into account the polluter pays principle as well as focusing on poverty, inequality and a just transition to a socially and environmentally sustainable economy in a participatory approach in cooperation with relevant public authorities, economic, and social partners as well as civil society organisations. Reflecting the importance of tackling climate change and loss of biodiversity in order to contribute to the financing of necessary actions to be taken at EU, national and local level to fulfil in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, as well as to ensure integrated disaster prevention support linking resilience and risk prevention, preparation and response, the Funds will contribute to mainstream climate actions and to the achievement of an overall target of 25 % biodiversity protection by targeting 30 % of the EU budget expenditure supporting climate objectives. The Funds must contribute substantially to the achievement of a circular and low-carbon economy in all territories of the Union and fully incorporating the regional dimension. Operations under the ERDF are expected to contribute 30 % to at least 35 % of the overall financial envelope of the ERDF to climate objectives. Operations under the Cohesion Fund are expected to contribute 37 % 40  % of the overall financial envelope of the Cohesion Fund to climate objectives. These percentages should be respected throughout the programming period. Therefore, relevant actions will be identified during the preparation and implementation of these funds, and reassessed in the context of the relevant evaluations and review procedures. These actions and the financial allocation reserved for their implementation are to be included in the national Integrated Energy and Climate Plans in accordance with Annex IV of Regulation (EU)2018/xxxx[new CPR] as well as long-term renovation strategy established under the revised Energv Performance of Building Directive (E) 2018/844 to contribute to the achievement of a decarbonised building stock by 2050, and attached to the Programmes. Specific attention should be paid to carbon-intensive areas facing challenges due to decarbonisation commitments, in view of assisting them in pursuing strategies consistent with the Union’s climate commitment and laid down in the Integrated National Energy and Climate Plans and under the ETS Directive 2018/410 and to protect workers also through training and reskilling opportunities. [Am. 11]

(15)

In order to enable the ERDF to provide support under ETC/Interreg in terms of both investments in infrastructure and the associated investments, training and integration activities, for the improvement and development of administrative skills and competences, it is necessary to provide that the ERDF may also provide support for activities under the specific objectives of the ESF+, set up under Regulation (EU) 2018/XXX of the European Parliament and of the Council [new ESF+] (7). [Am. 12]

(16)

In order to concentrate the use of limited resources in the most efficient way, the support given to by the ERDF to productive investments under the relevant specific objective, should be limited directed to only micro, small and medium-sized enterprises (‘SMEs’) within the meaning of Commission Recommendation 2003/361/EC (8), except where investments involve cooperation with SMEs in research and innovation activities and to enterprises other than SMEs, without prejudice to jobs related to the same or similar activity in other European regions, within the meaning of Article 60 of Regulation (EU) . ../…[new CPR] . [Am. 190/rev]

(17)

The ERDF should help to redress the main regional imbalances in the Union and to reduce disparities between the levels of development of the various regions and the backwardness of the least favoured regions including those facing challenges due to the decarbonisation commitments through financial support for the transitional period. It should also foster resilience and prevent vulnerable territories from falling behind . ERDF support under the Investment for jobs and growth goal should therefore be concentrated on key Union priorities in line with policy objectives laid down in Regulation (EU) 2018/xxx [new CPR]. Therefore support from the ERDF should be concentrated specifically on the policy two objectives of a ‘a smarter Europe by promoting innovative, and smart and inclusive economic development and transformation’ , regional connectivity in the area of technologies, developing the information and communication technologies (ICT), connectivity and efficient public administration and ‘a greener, low-carbon and resilient Europe for all by promoting clean and fair energy transition, green and blue investment, the circular economy, climate adaptation and risk prevention and management’ ' while taking account of the overall policy objectives of a more cohesive and solidarity-based Europe helping reduce economic, social and territorial asymmetries. That ' while taking account of the overall policy objectives of a more cohesive and solidarity-based Europe helping reduce economic, social and territorial asymmetries. Said thematic concentration should be attained at national level, while allowing margins for flexibility at the level of individual programmes and between the three groups of Member States formed according to respective gross national income various categories of regions, taking account too of different levels of development . In addition, the methodology to classify the regions Member States should be set out in detail taking into account the specific situation of the outermost regions. [Am. 14]

(17a)

In order to ensure the strategic importance of investments co-financed by the ERDF and CF, Members States could make a duly justified request for further flexibility within the current framework of Stability and Growth Pact for the public or equivalent structural expenditure. [Am. 15]

(18)

In order to concentrate the support on key Union priorities and in line with the objectives of social, economic and territorial cohesion set out in Article 174 TFEU and the policy objectives laid down in Regulation (EU) 2018/xxx [new CPR] , it is also appropriate that thematic concentration requirements should be respected throughout the programming period, including in the case of transfer between priorities within a programme or between programmes. [Am. 16]

(18a)

The ERDF should address the problems of accessibility to, and remoteness from, large markets, faced by areas with an extremely low population density, as referred to in Protocol No 6 on special provisions for Objective 6 in the framework of the Structural Funds in Finland and Sweden to the 1994 Act of Accession. The ERDF should also address the specific difficulties encountered by certain islands, border regions, mountain regions and sparsely populated areas, the geographical situation of which slows down their development, with a view to supporting their sustainable development. [Am. 17]

(19)

This Regulation should set out the different types of activities th e costs of which may be supported by means of investments from the ERDF and the Cohesion Fund, under their respective objectives as set out in the TFEU including crowdfunding . The Cohesion Fund should be able to support investments in the environment and in TEN-T. With regard to the ERDF, the list of activities should take into account specific national and regional development needs as well as endogenous potential and be simplified and it should be able to support investments in infrastructure, including research and innovation infrastructure and facilities, cultural and heritage infrastructure, sustainable tourism infrastructure also through the tourist districts, services to enterprises, as well as investments in housing, investments in relation to access to services with a particular focus on disadvantaged, marginalised and segregated communities , productive investments in SME's, equipment, software and intangible assets , incentives during the transition period of regions in the process of decarbonisation , as well as measures with regard to information, communication, studies, networking, cooperation, exchange of experiences between partners and activities involving clusters. In order to support the programme implementation, both funds should also be able to support technical assistance activities. Finally, in order to support provide for a broader range of interventions for Interreg programmes, the scope should be enlarged to also include the sharing a broad range of facilities and human resources and costs linked to measures within the scope of the ESF+. [Am. 18]

(20)

Trans-European transport networks projects in accordance with Regulation (EU) No 1316/2013  No1316/2013 shall continue to be financed from the Cohesion Fund , including tackling the missing links and bottlenecks, in a balanced manner as well as including for improving the safety of existing bridges and tunnels via both shared management and the direct implementation mode under the Connecting Europe Facility (‘CEF’). These networks must boost public services in rural areas, especially in sparsely populated areas and in areas with largely ageing populations, in order to foster interconnectivity between cities and the countryside, promote rural development, bridge the digital divide. [Am. 19]

(21)

At the same time, it is important to identify synergies on the one hand and clarify those activities which fall outside the scope of the ERDF and the Cohesion Fund, including investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC of the European Parliament and of the Council (9) on the other hand; this  in order to multiplication effects or avoid duplication of available financing, which already exists as part of that Directive. In addition, it should be explicitly set out that the overseas countries and territories listed in Annex II of the TFEU are not eligible for support from the ERDF and the Cohesion Fund. [Am. 20]

(22)

Member States should regularly transmit to the Commission information on the progress made using the common output and result indicators set out in Annex I. Common output and result indicators could be complemented, where necessary by programme-specific output and result indicators. The information provided by the Member States should be the basis on which the Commission should report on the progress towards the achievement of specific objectives over the whole programming period using for this purpose a core set of indicators set out in Annex II.

(23)

Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016, there is a need to evaluate the Funds on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the Funds on the ground. [Am. 21]

(24)

In order to maximise the contribution to territorial development, and to address more effectively economic, demographic, environmental and social challenges, as envisaged in Article 174 TFEU, in areas with natural or demographic disadvantages including ageing, rural desertification and demographic decline but also demographic pressure or where it is difficult to access basic services, actions in this field should be based on programmes, axes or integrated territorial strategies including in urban areas and rural communities . These actions should be the two sides of the same coin, based on both the central urban hubs and their surroundings as well as the more remote rural. These strategies may also benefit from a multifund and integrated approach involving the ERDF, ESF+, EMFF and EAFRD. A minimum target of 5 % of ERDF resources should be earmarked at national level for integrated territorial development . Therefore, the ERDF support should be delivered through the forms set out in Article 22 of Regulation (EU) 2018/xxxx [new CPR] ensuring appropriate involvement of local, regional and urban authorities , economic and social partners and representatives of civil society and non-governmental organisations . [Am. 22]

(24a)

Specific attention should be paid to carbon-intensive areas facing challenges due to decarbonisation commitments, in view of assisting them in pursuing strategies consistent with the Union’s climate commitment under the Paris Agreement that protect workers and affected communities alike. Such areas should benefit from dedicated support to prepare and implement plans for decarbonisation of their economies taking into account the need for targeted vocational training and reskilling opportunities for the workforce. [Am. 23]

(25)

Within the framework of sustainable urban development, it is considered necessary to support integrated territorial development in order to more effectively tackle the economic, environmental, climate, demographic , technology and social and cultural challenges affecting urban areas, including functional urban areas and rural communities , while taking into account the need to promote urban-rural linkages , including through peri-urban areas where appropriate . The principles for selecting the urban areas where integrated actions for sustainable urban development are to be implemented, and the indicative amounts for those actions, should be set out in the programmes under the Investment for jobs and growth goal with . Said actions may also benefit from a multifund and integrated approach involving the ERDF, ESF+, EMFF and the EAFRD.  A minimum target of 6 % 10 % of the ERDF resources allocated should be earmarked at national level for that purpose the sustainable urban development priority . It should also be established that this percentage should be respected throughout the programming period in the case of transfer between priorities within a programme or between programmes, including at the mid-term review. [Am. 24]

(26)

In order to identify or provide solutions which address issues relating to sustainable urban development at Union level, the Urban Innovative Actions in the area of sustainable urban development should be replaced by continued and developed into a European Urban Initiative, to be implemented under direct or indirect management. That initiative should cover all urban areas and support the Urban Agenda for the European Union (10) aiming to stimulate growth, liveability and innovation and to identify and successfully tackle social challenges . [Am. 25]

(27)

Specific attention should be paid to outermost regions, namely by adopting measures under Article 349 of the TFEU providing for an additional allocation for the outermost regions to offset the additional costs incurred in these regions as a result of one or several of the permanent restraints referred to in Article 349 of the TFEU, namely remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development. This allocation can cover investments, operating costs and public service obligations aimed at offsetting additional costs caused by such restraints. Operating aid may cover expenditure on freight transport services , green logistics, mobility management and start-up aid for transport services as well as expenditure on operations linked to storage constraints, the excessive size and maintenance of production tools, and the lack of human capital in the local market . This allocation shall not be subject to the thematic concentration provided for in this Regulation . In order to protect the integrity of the internal market, and as is the case for all operations co-financed by the ERDF and the Cohesion Fund, any ERDF support to the financing of operating and investment aid in the outermost regions should comply with State aid rules as set out in Articles 107 and 108 of the TFEU. [Am. 26]

(28)

In order to amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of making adjustments, where justified, to the Annex II which sets out list of indicators used as a basis to provide information to the European Parliament and to the Council on performance of programmes. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016 (11). In particular, in order to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(29)

Since the objective of this Regulation, namely to reinforce economic, social and territorial cohesion by redressing the main regional imbalances in the Union through citizens oriented approach aimed at supporting community led development and fostering active citizenship , cannot be sufficiently achieved by the Member States but can rather, by reason of the extent of the disparities between the levels of development of the various regions and the backwardness of the least favoured regions and the limit on the financial resources of the Member States and regions, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the TEU. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective. [Am. 27]