Here’s a breakdown of Regulation (EU) 2025/1914:
**1. Essence of the Act:**
Regulation (EU) 2025/1914 amends Regulations (EU) 2021/1058 (ERDF and Cohesion Fund) and (EU) 2021/1056 (Just Transition Fund) to address strategic challenges identified in the mid-term review of the EU’s cohesion policy. It aims to refocus investments on new priorities such as enhancing defence capabilities, promoting affordable housing, improving energy infrastructure, and increasing water resilience. The regulation introduces flexibility in thematic concentration requirements and provides additional financial incentives to accelerate the implementation of cohesion policy programs.
**2. Structure and Main Provisions:**
The Regulation is structured as follows:
* **Amendments to Regulation (EU) 2021/1058 (ERDF and Cohesion Fund):**
* Adds new specific objectives related to defence capabilities, affordable housing, and energy interconnectors.
* Introduces flexibility in thematic concentration requirements, allowing amounts programmed for new strategic priorities to count towards thematic concentration.
* Allows Member States to allocate resources from the ERDF and the Cohesion Fund to the Member State compartment of the InvestEU Fund.
* Introduces specific provisions linked to the mid-term review, including additional pre-financing and adjustments to eligibility of expenditure and decommitment rules.
* Allows reallocation of ERDF resources to the European Urban Initiative and the Interregional Innovation Investments Instrument.
* **Amendments to Regulation (EU) 2021/1056 (Just Transition Fund):**
* Expands the scope of investments eligible under the JTF, including investments in smart mobility, water, land restoration and affordable housing.
* Removes limitations for the revision of targets to provide flexibility in implementation.
* **Limitations on programme amendments and transfers:**
* Specifies that amounts corresponding to commitments suspended due to breaches of the rule of law and amounts exceeding the flexibility amount corresponding to specific objectives subject to a negative assessment based on horizontal enabling conditions cannot be subject to program amendments or transfers under this Regulation.
**3. Main Provisions for Practical Use:**
* **New Specific Objectives:** The addition of specific objectives related to defence, housing, and energy infrastructure opens new avenues for funding projects in these areas.
* **Flexibility in Thematic Concentration:** This allows Member States to direct funds towards new priorities without being constrained by existing thematic concentration requirements.
* **Additional Pre-financing:** The provision of additional pre-financing for dedicated priorities can help accelerate the implementation of projects.
* **Extension of Eligibility and Decommitment Deadlines:** Extending the final date for eligibility of expenditure and decommitment provides more time for projects to be completed and for funds to be absorbed.
* **Increased Co-financing Rate:** The possibility of a higher Union co-financing rate for certain priorities can alleviate the burden on national budgets.
* **Simplified Procedures:** The introduction of simplified selection procedures for operations contributing to IPCEIs and those with a Seal of Excellence can facilitate the uptake of key innovative actions.
: The regulation includes specific provisions for regions bordering Russia, Belarus, and Ukraine, including increased pre-financing percentages and higher co-financing rates, acknowledging the adverse impact of the war in Ukraine on these regions.
