The European Parliament adopted by 565 votes to 74, with 21 abstentions, a resolution on the role of Cohesion Policy in the outermost regions of the European Union in the context of EU 2020.

Members consider that Cohesion Policy must remain one of the main instruments of European action to reduce disparities in the European regions in general, and in the ORs in particular, with a view to enabling them to integrate into the internal market and assert themselves in their respective geographical areas, promoting the economic development and convergence of these regions with the EU mainland and pursuing the EU 2020 targets.

(1) Differentiated and holistic treatment for the outermost regions : the resolution stresses that, under the terms of the TFEU, the ORs are entitled to differentiated and holistic treatment, enabling them to benefit from the maximum level of support, irrespective of their level of development, so that their specific features are sufficiently considered and protected.

Parliament supports the advisability of ORs pursuing the main objectives defined in the Europe 2020 strategy, but emphasises the need to modulate these in accordance with their own situations, taking into account their regional diversity, their structural conditions and the potential benefits. It states that Article 349 of the TFEU, which stipulates the adoption of specific measures aimed at lessening the impact of OR characteristics, should be used more often than it is, and should be given the legal, institutional and political effect needed to ensure fair integration and economic and social development for the ORs within the internal market and, on a wider scale, within the European Union.

Members believe that some flexibility needs to be shown for the ORs as regards concentration on the three main thematic objectives laid down in the new proposals for regulations from 2014. They consider that other criteria should be used to determine the eligibility of ORs for the allocation of structural funds and calls for the implementation of a specific criterion whereby ORs are classified among the least developed regions regardless of their GDP. They stress, moreover, that the co-financing rates in respect of the ORs should be 85 % for all instruments providing aid for those regions.

The resolution welcomes the Commission’s plan to include a budget line for ‘Outermost regions and regions with a very low population density’ in MFF 2014-2020, as this will create a clearer link between the funds allocated for those regions and their objectives.

Parliament deplores, however, the proposal, within the additional ERDF funding, to reduce drastically the amounts to be allocated to the ORs and regions with a low population density for the financial period from 2014 to 2020 and are concerned that this allocation, initially designed to compensate for the effects of the structural disadvantages of the outermost regions and regions with a low population density, has been reduced to 50 % by earmarking for different objectives. It draws attention to the fact that in the proposal for a Regulation on the next ESF, the situation of ORs will not be referred to , considering not only the structural characteristics but also their specific economic situation which puts them among the regions with the highest unemployment rates in the EU.

The resolution emphasises that European taxation and customs policies should be adjusted in order to enhance the competitiveness of the outermost regions’ economies and that the existence of appropriate tax and customs frameworks is of paramount importance to the diversification of economic activity and the creation of sustainable jobs in the ORs. It also calls for the possibility of developing a specific framework on state aid to ORs to be examined, and favours retaining the current levels of aid for investment in large, medium and small enterprises and the possibility of granting operational aid which is not degressive or limited in time, within a flexible regulatory framework.

Members consider that EU intervention should aim to play a key role and boost initiative by developing, in the ORs, centres of excellence based on sectors which exploit their advantages and their know-how, such as waste management, renewable energy, energy self-sufficiency, biodiversity, student mobility, climate research and crisis management.

(2) A specific framework for European policies in the outermost regions : Parliament advocates the need for prior assessment of the impact of European regulation projects on the economies of the Outermost Regions.

It regrets that the proposal for the reform of the Common Fisheries Policy does not take sufficient account of the situation of the ORs. It draws attention to the marine dimension of the ORs and the importance of the fishing sector in regional development policy and jobs for local populations.

Members highlight the need to maintain measures for the sustainable management and protection of marine resources to gradually restrict access to marine areas identified as biogeographically sensitive so that eventually only local fleets are allowed there, to use environmentally friendly fishing equipment, to promote aquaculture. They also call for an increase in the compensation for additional costs in the POSEI fisheries programme. They draw attention to the importance of the tourism sector and call on the Commission to speed up the implementation of the European Action Plan.

Parliament argues for the creation of technological infrastructures and Europe-wide innovation hubs , the development of projects and partnerships with Scientific and Technological System organisations and the exchange of ideas and good practices through European innovation support networks and smart specialisation such as the S3 platform, and long-term investments in the ORs, in the framework of Cohesion Funding and to ensure active participation in the flagship projects of the EU 2020 strategy.

Members emphasise the need to facilitate synergy between Cohesion Policy funds and the Framework Programme for Research and Development in order to increase the development of the outermost regions and curb the under-utilisation of research funds. They note that a single European transport area should contribute towards ensuring the inclusive growth of the ORs, reduce their access gap and combat climate change.

Pointing out that the ORs’ dependence on imported fossil fuels results in substantial additional costs, the resolution proposes strengthening the renewable energy sector and energy efficiency through initiatives such as the ‘Pact of Islands’, aimed at developing local action plans for renewable energy and projects suitable for financing, in order to achieve a reduction in CO2 emissions of at least 20 % by 2020.

Members stress the need to improve access to funding for businesses in ORs in particular by setting up a dialogue with the EIB Group and by supporting the creation of local investment funds in each OR, as well as the development of regional capital investment markets.

(3) Better governance and integration of the outermost regions in the EU and in their geographical environments : Parliament advocates greater involvement of the regional authorities of the ORs in preparing and implementing European programmes and policies, respecting the principles of flexibility, adaptability and modulation, within a framework of subsidiarity and a multi-level and partnership-based form of governance, in partnership with the private sector and civil society, in order to ensure that their specific needs are taken into account at all levels of the decision-making process and to ensure greater visibility of these regions in the EU institutions.

Members stress the importance of regional cooperation for ORs and of the continuation of territorial cooperation programmes in the ORs. They point to the role of the ORs as EU borders with the rest of the world and advocate an approach, particularly through pursuing the debate the Commission has said it will hold in partnership with the ORs, that recognises their closeness to EU third countries, including the countries with which they have special cultural and historical ties.

In this context, they advocate more relaxed regulations aimed at using more effectively the available funding and completing cooperation projects as well as raising the ERDF co-financing rates to 85 %, giving greater priority to transnational cooperation and removing, in the case of the ORs, the 150km criterion for sea borders in cross-border cooperation.

The Committee on Regional Development adopted the report drafted by Nuno TEIXEIRA (PPE, PT) on the role of Cohesion Policy in the outermost regions of the European Union in the context of EU 2020.

Members recall that the Cohesion Policy should be aligned with, and incorporate the features of, the Europe 2020 Strategy, which is aimed at organising policy initiatives around smart, sustainable and inclusive growth, promoting an economy with a high level of employment that is socially and territorially cohesive, and should take due account of the situation of the outermost regions (ORs).

Differentiated and holistic treatment for the outermost regions : the report stresses that, under the terms of the TFEU, the ORs are entitled to differentiated and holistic treatment, enabling them to benefit from the maximum level of support, irrespective of their level of development, so that their specific features are sufficiently considered and protected.

The committee supports the advisability of ORs pursuing the main objectives defined in the Europe 2020 strategy, but emphasises the need to modulate these in accordance with their own situations, taking into account their regional diversity, their structural conditions and the potential benefits.

Members believe that some flexibility needs to be shown for the ORs as regards concentration on the three main thematic objectives laid down in the new proposals for regulations from 2014. They consider that other criteria should be used to determine the eligibility of ORs for the allocation of structural funds and calls for the implementation of a specific criterion whereby ORs are classified among the least developed regions regardless of their GDP. They stress, moreover, that the co-financing rates in respect of the ORs should be 85 % for all instruments providing aid for those regions.

The report welcomes the Commission’s plan to include a budget line for ‘Outermost regions and regions with a very low population density’ in MFF 2014-2020, as this will create a clearer link between the funds allocated for those regions and their objectives.

Members deplore, however, the proposal, within the additional ERDF funding, to reduce drastically the amounts to be allocated to the ORs and regions with a low population density for the financial period from 2014 to 2020 and are concerned that this allocation, initially designed to compensate for the effects of the structural disadvantages of the outermost regions and regions with a low population density, has been reduced to 50 % by earmarking for different objectives. They draw attention to the fact that in the proposal for a Regulation on the next ESF, the situation of ORs will not be referred to , considering not only the structural characteristics but also their specific economic situation which puts them among the regions with the highest unemployment rates in the EU.

The report emphasises that European taxation and customs policies should be adjusted in order to enhance the competitiveness of the outermost regions’ economies and that the existence of appropriate tax and customs frameworks is of paramount importance to the diversification of economic activity and the creation of sustainable jobs in the ORs. It also calls for the possibility of developing a specific framework on state aid to ORs to be examined, and favours retaining the current levels of aid for investment in large, medium and small enterprises and the possibility of granting operational aid which is not degressive or limited in time, within a flexible regulatory framework.

A specific framework for European policies in the outermost regions : the committee advocates the need for prior assessment of the impact of European regulation projects on the economies of the Outermost Regions.

It regrets that the proposal for the reform of the Common Fisheries Policy does not take sufficient account of the situation of the ORs. It draws attention to the marine dimension of the ORs and the importance of the fishing sector in regional development policy and jobs for local populations.

Members highlight the need to maintain measures for the sustainable management and protection of marine resources and call for an increase in the compensation for additional costs in the POSEI fisheries programme. They draw attention to the importance of the tourism sector and call on the Commission to speed up the implementation of the European Action Plan.

The report argues for the creation of technological infrastructures and Europe-wide innovation hubs , the development of projects and partnerships with Scientific and Technological System organisations and the exchange of ideas and good practices through European innovation support networks and smart specialisation such as the S3 platform, and long-term investments in the ORs, in the framework of Cohesion Funding and to ensure active participation in the flagship projects of the EU 2020 strategy.

Members emphasise the need to facilitate synergy between Cohesion Policy funds and the Framework Programme for Research and Development in order to increase the development of the outermost regions and curb the under-utilisation of research funds. They note that a single European transport area should contribute towards ensuring the inclusive growth of the ORs, reduce their access gap and combat climate change.

Pointing out that the ORs’ dependence on imported fossil fuels results in substantial additional costs, the report proposes strengthening the renewable energy sector and energy efficiency through initiatives such as the ‘Pact of Islands’, aimed at developing local action plans for renewable energy and projects suitable for financing, in order to achieve a reduction in CO2 emissions of at least 20 % by 2020.

Members stress the need to improve access to funding for businesses in ORs in particular by setting up a dialogue with the EIB Group and by supporting the creation of local investment funds in each OR, as well as the development of regional capital investment markets.

Better governance and integration of the outermost regions in the EU and in their geographical environments : the report advocates greater involvement of the regional authorities of the ORs in preparing and implementing European programmes and policies, respecting the principles of flexibility, adaptability and modulation, within a framework of subsidiarity and a multi-level and partnership-based form of governance, in partnership with the private sector and civil society, in order to ensure that their specific needs are taken into account at all levels of the decision-making process and to ensure greater visibility of these regions in the EU institutions.

Members stress the importance of regional cooperation for ORs and of the continuation of territorial cooperation programmes in the ORs.

In this context, they advocate more relaxed regulations aimed at using more effectively the available funding and completing cooperation projects as well as raising the ERDF co-financing rates to 85 %, giving greater priority to transnational cooperation and removing, in the case of the ORs, the 150km criterion for sea borders in cross-border cooperation.