Dáil Éireann Debate, Tuesday - 12 February 2013
320. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if the proposed macro-economic conditionality in the next round of EU funds will lead to a suspension of ESF projects and all other projects funded or part funded by EU cohesion funds in Ireland fails to meet the macro-economic conditions. [6816/13]
View answerOn 8 February 2013 the European Council reached political agreement on the multi-annual financial framework for 2014-2020. This is the basis on which the Council will now seek the consent of the European Parliament to the MFF Regulation.
The European Council agreed, inter alia, that a gradual macro-economic conditionality will be established in the regulation governing the Common Strategic Framework (CSF) Funds, which includes the European Social Fund, in order to establish a closer link between Cohesion policy and the economic governance of the Union, so that the effectiveness of expenditure under the CSF Funds is underpinned by sound economic policies and that the CSF Funds can, if necessary, be redirected to addressing the economic problems a country is facing.
The question of the suspension of funding would only arise where a Member State fails to take effective action in relation to its Partnership Contract and the relevant programmes or fails to comply with EU economic and fiscal policy requirements. Any decisions on suspensions would have to be proportionate and effective, taking into account the economic and social circumstances of the Member State concerned, and would have to respect equality of treatment between Member States, in particular with regard to the impact of the suspension on the economy of the Member State concerned. Priority would be given to the suspension of commitments with payments only being suspended when immediate action is sought and in cases of non-compliance.
The Government is fully committed to the effective use of Cohesion funds, however, and Ireland has one of the best records in Europe in this regard. We are also committed to sound economic governance as is witnessed by our successful implementation of the EU/IMF Programme. I am satisfied that we would be able to meet any requirements should any arise.
