08.04.2022
Petition: ERDF funding allocated to Interreg Next programmes 2021-2027 must be channelled to the development of external border regions in Finland
Petition of 8 April 2022
GovernmentFinnish MEPsMembers of Parliament of the Programme Regions
ERDF funding under INTERREG NEXT 2021-2027 PROGRAMMES SHALL BE PROVIDED FOR THE DEVELOPMENT OF EXTERNAL BANKS IN FINLAND
The EU's external border programmes have been an important development instrument for border regions throughout the 21st century. For the 2021-2027 programming period, Finland had prepared three Interreg NEXT programmes at the EU’s external borders with the aim of supporting the development and cooperation of border regions between Finland and Russia through development and investment projects. Sweden and Norway also participated in the Kolarctic programme. The total EU funding allocated to the three programmes was approximately EUR 112.1 million, of which approximately EUR 55.5 million from the ERDF and approximately EUR 56.6 million from the NDICI. In addition, a similar amount of government funding would have been allocated to them.
Russia's military action in Ukraine has halted the preparation of new external border programmes. In accordance with the Interreg Regulation, the European Commission has announced that the ERDF allocation for the first year of the external border programmes, totalling approximately EUR 9.5 million, will be transferred to Interreg programmes at the EU's internal borders. In the case of Finland, the funding will be transferred to the Aurora or Central Baltic programmes.
The transfer of authorisations to the Aurora and Central Baltic programmes is problematic from the perspective of the counties included in the external border programmes, as some of the counties are not included in the programme area of either programme. In practice, the Commission's solution means a loss of millions of euros for the external border regions, whose regional economy is particularly affected by the new geopolitical situation. In addition, in many external border regions, the role and awareness of Interreg has been marginal compared to the CBC programme.
In order to ensure that funding allocated to external border programmes for the following years 2023-2027 is not transferred to Interreg programmes, Finland must, without delay, influence the European Commission to start preparing for the relaxation of the Common Provisions Regulation 2021/1060. The amendment should allow ERDF funding allocated to external border programmes (Interreg NEXT programmes) to be transferred to the national regional and structural policy programme. It is also necessary to clarify: as a matter of urgency, whether there is also a need to amend the so-called Interreg Regulation ((EU) 1059/2021) in addition.
Our proposal for new draft regulations is at the end of this petition.With the amendment(s) of the decree, the ERDF and Finnish national funding transferred from the Interreg NEXT programmes could be channelled through the AURA programme of EU regional and structural policy to the provinces from which funding for the Interreg NEXT programmes is being cut due to the freezing of cooperation with Russia. A section supporting the internationalisation of the external border regions can be added to the AURA programme by drawing up a separate ITI (Integrated Territorial Investments) strategy within the programme.
Due to the tight timetable for amendments to the Regulations, we expect Finland to act swiftly and actively in relation to the European Union in order to initiate amendments to the Regulations.ERDF funds and their national counterparts should continue to be channelled to support regional development in border regions. This is of great importance in the difficult situation in the border counties, when connections with Russia are likely to have been frozen for a long time in practice.
Further information:Satu Sikanen, Regional Director, Regional Council of South Karelia, +358 400 661 318Regional Director Pauli Harju, Regional Council of Northern Ostrobothnia, +358 400 389 152Päivi Ekdahl, Development Director, Regional Council of Lapland, +358 400 383 578
Southeast Finland Russia CBC Programme
Union of South Karelia,JUKKA KOPRA, Chairman of the Provincial Government
Kymenlaakso Regional CouncilJUKKA NYBERG, Chairman of the Provincial Government
Regional Assembly of South SavoMr ARTO SEPPONEN, Chairman of the Provincial Government
Karelia CBC Programme
Regional Assembly of Oulu RegionJUSSI YLITALO, Chairman of the Provincial GovernmentKainuu Regional AssemblyMr SAKARI SEPPÄNEN, Chairman of the Provincial GovernmentRegional Assembly of North KareliaHANNA HUTTUNEN, Chairman of the Provincial Government
Kolarctic CBC ProgramRegional Assembly of LaplandKATRI KULMUNI, Chairman of the Provincial Government
Need for amendments to the Regulations (proposals)
1) Common Provisions Regulation (CPR) (EU)2021/1060Article 111 "Transferability of funds", paragraph 2 (Investment in jobs for each Member Stateand growth and the European territorial cooperation goal (Interreg) must not be subject to any transfer between these objectives) and exceptional procedures must be put in place to allow for a smooth transfer of funds in the event of unforeseen circumstances. The new wording of the article could be, for example, "The total resources allocated to each Member State under the Investment for jobs and growth goal and the European territorial cooperation goal (Interreg) shall not be transferable between these objectives; Except in a justified Force Majeur situation‘.Pursuant to Article 109.2 of the General Regulation, implementing act (EU) 2021/1131 adopted by the Commission:the allocations for the Investment for jobs and growth goal and the European Territorial Cooperation goal, broken down by Member State, should also be changed if funds are transferred between the objectives.
2) Interreg Regulation (EU) 1059/2021With regard to the Interreg Regulation, it needs to be clarified whether there is a need for a change. If deemed necessary, the articles to be amended would be as follows:Article 9 ERDF resources for Interreg programmes: the percentages for the sub-regions defined in Article 8 may need to be changed;Article 11 List of Interreg programme allocations: Commission Implementing Acts (EU)2022/75 and (EU) 2022/74, which fixes the amount of ERDF support for each programme, will potentially come from:changingArticle 12 Repayment and suspension of appropriations: Section 3, which defines the following:the possibility of allocating amounts to (only) internal cross-border programmes, possibly to be modified;
