Regions throw fund reform proposals into doubt

The regional leaders gathered in Brussels are expected to adopt a report, on 1 April 2011, which directly contradicts many of the European Commission's ideas for reforming the EU structural funds in the coming years.

The draft text directly contradicts a number of specific proposals that were put forward by the European Commission in the 5th Cohesion Report, published in November 2010.

First, the EU consultative body is expected to confirm its opposition to the idea that structural fund payments could be suspended if a member state is found not to be following rules laid down in the so-called 'Stability and Growth Pact', for example by failing to bring its national budget deficit down to less than 3% of its annual economic output (GDP).

ESO: Background information: A European fund for economic revival in crisis countries http://www.europeansources.info/record/a-european-fund-for-economic-revival-in-crisis-countries/

ESO: Background information: Regional policy in the EU: A midterm healthcheck http://www.europeansources.info/record/regional-policy-in-the-eu-a-midterm-healthcheck/

ESO: Background information: France pushes for cuts in EU regional funding http://www.europeansources.info/record/france-pushes-for-cuts-in-eu-regional-funding/

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