Explanatory Memorandum to COM(2009)382 - Amendment of Regulation (EC) No 1080/2006 on the European Regional Development Fund as regards the eligibility of housing interventions in favour of marginalised communities - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2009)382 - Amendment of Regulation (EC) No 1080/2006 on the European Regional Development Fund as regards the eligibility of housing ... |
|---|---|
| source | COM(2009)382  |
| date | 17-07-2009 |
Grounds for and objectives of the proposal The proposal aims to permit the ERDF financial support for housing interventions in favour of marginalised communities living in the Member States that acceded to the European Union on or after 1 May 2004. In the new Member States, the great majority of these communities live in rural areas and in shelters (in rural as well as in urban areas) and they cannot benefit from the ERDF support. In fact, Article 7 i of the ERDF Regulation i provides for the eligibility of expenditure on housing in the new Member States. The experience to-date however, proves that the conditions of eligibility do not fully fit to the needs on the ground. Actually, under the current ERDF provisions, housing interventions can take place in the framework of urban development operations and in the form of renovation of existing houses. Therefore, support to housing interventions in rural areas or for the replacement of “houses” of a very poor quality in urban or rural areas cannot be eligible under the ERDF. There is a growing concern and commitment of the EU to combat social exclusion, including the particular situation of Roma. The European Parliament i and the Council i have repeatedly asked the Commission to take action to promote inclusion of these communities facing extreme deprivation and marginalisation. The Commission has taken the commitment to propose - in the framework of the Structural Funds - measures to improve the living conditions of these communities. The present proposal for an amendment of the ERDF Regulation translates this commitment. Moreover, for simplification purposes, this proposal contains minor drafting modifications of the current Article 7 i of the ERDF Regulation relating to the framework in which a housing intervention in urban areas shall take place without however modifying the existing eligibility rules in favour of EU-12 In particular: i) Article 7 i of the ERDF Regulation confers the Commission implementing powers for the definition of the criteria for the selection of areas and of the list of eligible housing interventions. The Commission exercised its powers in Article 47 of Regulation (EC) No 1828/2006. However, given the great diversity of housing situation on the ground, it has been proved that the criteria fixed by the Commission are not appropriate. Therefore, they are currently simplified. In order to take on board the simplification of Article 47 of Regulation (EC) No 1828/2006 currently in process it is proposed to provide that the implementing powers conferred to the Commission will be optional and not binding. ii) For clarity purposes, the eligible types of interventions in the existing buildings (the renovation of the common parts of residential buildings, the renovation and change of use of public owned buildings in order to transform them into “social housing”) should be included in the proposed Regulation. iii) Finally, the current wording of Article 7 i of the ERDF Regulation, expenditure shall be programmed “within the framework of an integrated urban development operation or priority axis” for areas experiencing or threatened by physical deterioration and social exclusion” needs to be improved. Therefore, it is proposed to replace the terms “operation” and “priority axis” by the term “integrated approach”, which ensures that a housing intervention is part of a broader intervention including aspects relating to housing such as social services, public spaces, culture, education, transport infrastructure, economic activities of the area etc regardless of the source of financing.
lt General context Access to housing and acceptable housing conditions for all citizens and, in particular, for the most vulnerable is a basic requirement of our society. Living conditions of communities facing extreme deprivation and marginalisation are –in the great majority of cases- deplorable: High rate of unemployment, low educational level, lack of skills, lack of heath services, criminality, spatial segregation, social exclusion, racism and evictions compose a bleak picture which contrasts with the core values of the European Union. The Structural Funds financial support can significantly contribute to the efforts of the National Authorities to put an end to this unacceptable situation. Therefore, allocations shall be made available also for housing interventions in favour of these communities currently ineligible under the ERDF, i.e. for i) housing interventions not limited to the urban areas and ii) housing interventions consisting of the replacement of houses of extremely poor quality, irrespectively of the area (“urban” or “rural”). In order to avoid unjustified discriminations, the guiding principle of the proposed interventions should be the 2nd Basic Principle on Roma Inclusion according to which interventions focusing on Roma people as target group should not exclude other people sharing similar socio-economic circumstances[4]. Moreover, housing interventions in favour of marginalised communities characterised by extreme deprivation are only part of a complex issue. Therefore they should be tackled in the framework of a multi-dimensional integrated approach, to be defined at national level, with strong partnerships and taking on board aspects relating to education, social affairs, integration, culture, health, employment, security etc. Hence, the aim of the proposal amending the current ERDF Regulation is to provide, in the framework of an integrated approach, acceptable housing conditions. In this context, the role of public authorities at all stages of the implementation is of an outmost importance.
Nd Existing provisions in the area of the proposal With the exception of energy efficiency and renewable energies intervention, accessible to all Member States, ERDF supported interventions in the housing sector are reserved only for Member States that acceded to the European Union on or after 1 May 2004, and under the conditions set out in Article 7 paragraph 2 of Regulation No 1080/2006 and Article 47 of the Commission Regulation No 1828/2009. As explained above, these conditions are not sufficient to tackle the specific housing problem of marginalised communities. It should also be noted that EAFRD already intervenes in the housing sector in rural areas under Regulation (EC) N° 1698/2005 (e.g. Axis 3 “Quality of life in rural areas and diversification of the rural economy”- Article 52(b)(ii) “village renewal and development”). Housing interventions in favour of marginalised communities in rural areas supported by both the EAFRD and the ERDF, implemented in the framework of integrated approaches, in which ESF can also contribute, will increase significantly the available financial support. It will be within the competence of the Member States to define, in the framework of an integrated approach, the complementarity between Funds in a way to optimise the synergy effect.
Consistency with the other policies and objectives of the Union The proposal is fully consistent with the EU policy objectives in the fields of non- discrimination, equal opportunities, economic and social cohesion, regional development and territorial cohesion. .
Consultation of interested parties
Consultation methods, main sectors targeted and general profile of respondents National Authorities, as well as representatives of marginalised communities and MEPs have been consulted informally on several occasions on the possibilities offered to marginalised communities by Article 7 i of ERDF Regulation, the obstacles and the various options for counteracting them.
Summary of responses and how they have been taken into account The outcome of all these consultations was that solutions based on the interpretation of Regulation (EC) No 1080/2006 were not sufficient.
There was no need for external expertise.
Impact assessment The present proposal permits the ERDF financial support for housing interventions in cases where marginalised communities living conditions are extremely poor and social exclusion is high. This could not be possible without modification of the existing regulatory framework.
Contents
Summary of the proposed action The proposed modification to Article 7 i of Regulation (EC) No 1080/2006 on the European Regional Development Fund seeks to permit and facilitate housing interventions in favour of marginalised communities in the new Member States when the current provisions cannot apply. Given the complexity of the intervention, it is important that National Authorities proceed in the framework of an integrated approach. In addition, for simplification purposes, minor drafting modifications in the existing provision are proposed.
Legal basis European Parliament and Council Regulation (CE) No 1080/2006 on the European Regional Development Fund, in its Article 7 i, defines the eligibility conditions applicable to the housing sector in the new Member States.
Subsidiarity principle The proposal complies with the subsidiarity principle to the extent that it broadens the possibilities for the new Member States to provide support to housing interventions in favour of marginalised communities in the way they consider more appropriate, while keeping the integrated approach as a minimum condition for intervention. This will permit to intervene in way “capturing” the specificities of each community but with a, basically, common method.
The proposal conforms to the proportionality principle since it is limited only to permit the ERDF support in the housing sector in favour of marginalised communities and for cases where the current provisions cannot apply. This intervention is limited in those Member States where the problem currently exists.
Proposed instrument: Regulation.
The Commission has already explored the possibilities offered by the current legislation. Even with the most flexible interpretation, the current rules setting a limited eligibility do not permit housing interventions outside the urban areas or the replacement of existing shelters by houses in favour of marginalised communities living in new Member States.
The proposal has no implication for the Community budget.