Cohesion Fund (2007-2013)

This Regulation establishes a Cohesion Fund to help finance environmental measures and trans-European transport networks in the ten new Member States plus Spain, Greece and Portugal. The Fund is linked to the "Convergence" objective of the reformed cohesion policy for the period 2007-2013.

ACT

Council Regulation of 14 July 2004 (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94 [Official Journal L 210 of 31.7.2006].

SUMMARY

During the period 2007-2013, the general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund require the Cohesion Fund to support measures under the "Convergence" objective, the aim of which is to speed up convergence in the Member States and regions whose development is lagging behind by improving conditions for growth and employment.

The ceiling for the Cohesion Fund's contribution to public expenditure co-financed in the Member States is set at 85 %.

Goals

The aim of the Cohesion Fund is to strengthen economic and social cohesion in the European Union (EU) with a view to promoting sustainable development.

Fields of activity

The Cohesion Fund finances action on:

• the environment (within the priorities assigned to the Community's environmental protection policy under the policy and action programme on the environment. In this context, the Fund may also intervene in areas related to sustainable development and transport outside trans-European networks);
• the trans-European transport networks, especially the priority projects of European interest.

Restrictions

Cohesion Fund assistance is subject to restrictions, in that the Council may:

• decide that there is an excessive government deficit in a beneficiary Member State;
• conclude that the Member State concerned has not taken effective action in response to a Council recommendation. The Council may therefore decide to suspend all or part of the commitments from the Fund for the Member State concerned.

Eligible expenditure

Although eligibility is decided at national level, the Regulation states that the following types of expenditure are not eligible for Cohesion Fund financing:

• recoverable value-added tax;
• interest owed;
• land purchases accounting for more than 10 % of total eligible expenditure;
• accommodation;
• decommissioning of nuclear power stations.

Background

Other provisions relating to cohesion policy for the period 2007-2013 are found in the four specific Regulations on:

• general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund;
• the European Regional Development Fund (ERDF);
• the European Social Fund;
• the European grouping of territorial cooperation (EGTC).

Cohesion policy for the period 2007-2013 is based on the Interinstitutional Agreement and the Financial Framework for 2007-2013

This Regulation entered into force on 1 August 2006, and Regulation (EC) No 1164/94 was repealed on the same date. The present Regulation must be reviewed by 31 December 2013.

RELATED ACTS

ELIGIBLE REGIONS

Commission Decision of 26 March 2007 amending Decision 2006/596/EC drawing up the list of Member States eligible for funding from the Cohesion Fund for the period 2007 to 2013 as concerns Bulgaria and Romania [Official Journal L 87 of 28.3.2007].

Commission Decision 2006/596/EC of 4 August 2006 drawing up the list of Member States eligible for funding from the Cohesion Fund for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

Commission Decision 2006/595/EC of 4 August 2006 drawing up the list of regions eligible for funding from the Structural Funds under the Convergence objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

INDICATIVE ALLOCATION BY MEMBER STATE

Commission Decision 2006/594/EC of 4 August 2006 fixing an indicative allocation by Member State of the commitment appropriations for the Convergence objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

COMMUNITY STRATEGIC GUIDELINES

Council Decision 2006/702/EC of 6 October 2006 on Community strategic guidelines on cohesion [Official Journal L 291 of 21.10.2006].

The draft Community strategic guidelines on cohesion, growth and employment were adopted by the Council on 6 October 2006. They constitute an indicative framework for establishing a cohesion policy and the intervention of the Funds during the period 2007-2013.

Communication from the Commission of 5 July 2005, Cohesion Policy in Support of Growth and Jobs - Community Strategic Guidelines, 2007-2013 [COM(2005) 299 - Not published in the Official Journal].

ANNUAL ACTIVITY REPORTS

Annual Report on the Cohesion Fund (2006) [COM(2007) 678 final - Not published in the Official Journal].

Annual report on the Cohesion Fund (2005) [COM(2006) 635 final - Not published in the Official Journal].

Annual report on the Cohesion Fund (2004) [COM(2005) 544 final - Not published in the Official Journal].

Annual report on the Cohesion Fund (2003) [COM(2004) 766 final - Not published in the Official Journal].

Annual report on the Cohesion Fund (2002) [COM(2003) 697 final - Not published in the Official Journal].

Last updated: 09.01.2008