€3.98 billion for energy infrastructure projects (report by Eugenijus MALDEIKIS)
MEPs backed a political agreement reached with the Council ahead of Parliament's first-reading vote on a co-decision report drafted by Eugenijus MALDEIKIS (UEN, LT) on the energy projects of the recovery plan.
This European Energy Programme for Recovery will provide €3.98 billion to energy projects in the following fields (article 3):
- gas and electricity infrastructure (€2,365 million);
- offshore wind energy (€565 million);
- carbon capture and storage (€1,050 million).
The recovery plan will bear up to half of the costs of gas and electricity infrastructure and offshore wind energy projects. Carbon capture and storage (CCS) installations can be co-financed by up 80% of the costs.
€200 million for Nabucco gas pipeline
The programme reserves €200 million for supporting the construction of the Nabucco pipeline which will bring natural gas from the Caspian Sea to the EU.
Moreover, the recovery plan lists 13 CCS projects in seven Member States which can apply for funding installations to store CO2 permanently and safely underground.
The list of potential projects also includes offshore wind energy parks in the North Sea and projects to integrate future offshore wind installations in the North and Baltic Seas into the onshore grid.
Unspent funds could be used for energy efficiency and renewable energy projects
MEPs and the Council agreed that the Commission will monitor the implementation of the programme and publish a report each year together with its proposal for the budget of the following year. If this report in March 2010 identifies "serious risks in implementing the priority projects", the Commission should propose additional energy projects, says the agreement.
On MEPs' initiative, the Commission will declare its intention to propose using for energy efficiency and renewable energy measures those funds which have not been committed by the end of 2010 for gas and electricity infrastructure, offshore wind energy or carbon capture and storage projects.
Greater flexibility for rural development measures (report by Petya Stavreva)
A further €250 million, over and above the funding planned for 2009, as well as greater flexibility in the allocation and use of money earmarked for the development of broadband internet in the countryside and for new agricultural challenges: these are the EP's main demands with regard to the rural development measures contained in the European economic recovery plan.
MEPs do not contest the global figure of €1.02 billion which was agreed by EU leaders at the European Summit in March in the consultative report drafted by Petya Stavreva (EPP-ED, BG). This report was adopted with 615 votes in favour, 21 against and 32 abstentions.
European Economic Recovery Plan - budgetary aspects
European Economic Recovery Plan - for modernisation of infrastructures and energy solidarity, of projects in the field of energy and broadband internet, as well as for strengthening operations related to the "new challenges" defined in the context of the assessment of the 2003 mid-term reform of the Common Agricultural Policy ("Health Check").
The funding of the European Economic Recovery Plan requires the revision of the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management as regards the multiannual financial framework (2007-2013). The EP and the Council reached a compromise on 2 April 2009.
Both institutions agreed on a two-phase approach and on a total amount of€5bn devoted to this purpose:
Step 1: €2.6 billion: heading 1a (competitiveness for growth and employment) ceiling should be increased of €2 billion in 2009 by decreasing the ceiling of Heading 2 (Conservation and management of natural resources, agriculture) by the same amount; €600 million would be added to rural development from 2009 budget;
Step 2: €2.4 billion: the remaining 2.4 billion would be secured through a compensation at the conciliation of the 2010 and 2011 budgetary procedures by using all means foreseen in its legal framework and without prejudice to the financial envelopes of the co-decided programmes and the annual budgetary procedure.
The financing foresees the following breakdown:
Energy projects - €3.98 billion will be made available under heading 1a of the financial framework. €2 billion in 2009 and €1.98 billion in 2010;
