European Regional Development Fund
The modification does not affect the implementation of the projects but provides budgetary help for the member states to cope with the consequences of the COVID-19.
Member States have been affected by the consequences of the COVID-19 outbreak in an unprecedented manner. The current public health crisis hampers growth in Member States, which in turn aggravates the serious liquidity shortages due to the sudden and significant increase in public investments needed in their healthcare systems and other sectors of their economies. That has created an exceptional situation that is addressed with specific measures as stated in the REGULATION (EU) 2020/558 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2020 amending Regulations (EU) No 1301/2013 and (EU) No 1303/2013.
With a view to alleviating the burden on public budgets responding to the public health crisis, Member States should be given the exceptional possibility to request, for cohesion policy programmes, a co-financing rate of 100% to be applied for the accounting year starting 1 July 2020 and ending 30 June 2021.
In practice, applying the temporary 100% co-financing rate not only will help to alleviate the burden on public budgets responding to the COVID-19 crisis, it will also mean that the total contribution from the union support will be reached sooner than without it, therefore, the N+3 fulfilment of the yearly target will be attained sooner. In addition, since the incurred expenditure will be generated in the second half of the year -as the COVID-19 crisis influenced the first half-, the programme account could be easier to be kept liquid by this method. It contributes to quicker and smoother programme and project implementation.
It also means that all Subsidy Contracts with beneficiaries remain unchanged with the previously defined co-financing rates as well as all projects under selection procedure will be financed by the same proportion of union support and national counterpart as before the present proposed modification.
You may read the modified Cooperation Programme document by clicking in the link.