EP gives green light to Structural Funds 2007- 2013 package[fr][de] 

MEPs on 4 July adopted the legal basis for the new Cohesion Policy 2007-2013, thus framing the future allocation of 35.7% of the total EU budget (€308 bn).

Two years after the Commission tabled proposals for a more Lisbon-oriented Cohesion policy 2007-2013, the European Parliament finally approved the legislation that conditions the allocation of Structural and Cohesion Funds in an enlarged EU.

The legislative package comprises one general and four specific regulations: the former lays out the common rules in programming, managing, controlling and evaluating the new Cohesion policy, whereas the other four determine specific rules that govern the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund and the new European Grouping of Territorial Co-operation (EGTC).

The EP rapporteur on the general regulation Konstantinos Hatzidakis (EPP-ED) noted that the vote entails "no cuts in the cohesion budget, and it means that European tax payers' money will be spent more effectively and efficiently." Most of the EP concerns, sometimes in the shape of amendments proposed in its first reading, were taken on board by the Council. For example:

• The general regulation will lay more emphasis on environmental, accessibility issues, as well as on the "partnership principle" that governs the whole policy; 
• Non-recoverable VAT will be made eligible under the rules of the ERDF, ESF and the Cohesion Funds for all member states;
• Within the ERDF, housing expenditure will be eligible for the costs of social housing renovation aimed at energy efficiency and environmental protection;
• The Cohesion Fund, which benefits member states with a GNP of less than 90% of the Community average National income, will be increased from €18 to €61.59 bn;
• Issues such as the fight against social exclusion, non-discrimination and gender equality, the integration of disabled people and inactive people are top priority in the ESF regulation. 

Regional policy Commissioner Danuta Hübner welcomed the EP vote on a Cohesion policy that she says is "tailor-made to deliver more jobs and growth, to the benefit of all European regions and the Union." She also urged all stakeholders involved not too lose time and get ready for January 2007 – the starting date for using the new Funds. In the meantime, EU institutions will have to agree on the Community Strategic Guidelines by October, on the basis of which member states will draft their National Strategic Reference Frameworks and the Operational Programmes.