LIST OF ABBREVIATIONS 6

LIST OF BOXES 7

LIST OF FIGURES 7

EXECUTIVE SUMMARY 8

1. INTRODUCTION 11

2. THE 2021–2027 COHESION POLICY AND THE 2028–2034 NRPP PROPOSAL: MAPPING CONTINUITY AND CHANGE 13

2.1. Overall architecture 14

2.1.1. A more integrated planning and regulatory framework 14

2.1.2. A different allocation formula but minor changes to national envelopes 15

2.2. Objectives, earmarking and co-financing rules 16

2.2.1. Comparing the 2021-2027 CP specific objectives with the NRPPs specific

objectives 17

2.2.2. Thematic concentration and thematic earmarking rules 17

2.2.3. Geographic earmarking rules 18

2.2.4. Co-financing rules 19

2.3. Governance 19

2.3.1. Partnership principle 19

2.3.2. Planning and implementation of EU funds 20

2.4. Financial management rules and performance framework 20

2.4.1. EU payments: shift from cost-based to performance-based approach 20

2.4.2. De-commitment rule and pre-financing 21

2.5. Reforms and rule of law conditionality 21

2.5.1. Policy reforms 21

2.5.2. Rule of Law conditionality 21

2.6. Flexibility and synergies with other EU programmes 22

2.6.1. Flexibility in response to crises and emerging needs 22

2.6.2. Synergies with other EU programmes 22

3. PURSUING COHESION OBJECTIVES THROUGH THE NEW NATIONAL PLANS: RISK OF MARGINALISATION OR STRATEGIC REFRAMING? 25

3.1. Recommendation 1: Clarify the intervention logic to promote cohesion and re-formulate the Proposal’s objectives accordingly 27

3.2. Recommendation 2: Task the Commission to issue EU cohesion national recommendations to steer the preparation of the plans 27

3.3. Recommendation 3: Subject the Plans to a territorial impact assessment (TIA) 28

3.4. Recommendation 4: Clarify the meaning of “right to stay” 28

4. A MORE CENTRALISED GOVERNANCE: IMPLICATIONS FOR REGIONAL AND LOCAL AUTHORITIES 30

4.1. Recommendation 5: A “legal check” accompanying the “regional check” 31

4.2. Recommendation 6: Set region-specific milestones and targets for NRPP measures in areas of exclusive regional competence 32

4.3. Recommendation 7: Guarantee predictable and timely payments to regional authorities 32

5. IMPLICATIONS OF ADOPTING A MORE FLEXIBLE AND INTEGRATED PROGRAMMING FRAMEWORK 33

5.1. Recommendation 8: Replace the 10% rural target with a 10% earmarking to support integrated local development strategies 34

5.2. Recommendation 9: Ensure that ringfenced allocations for less developed regions support cohesion-related interventions 34

5.3. Recommendation 10: Prevent early access to the mid-term review reserve 34

6. FROM COST-BASED TO PERFORMANCE-BASED REIMBURSEMENT: IMPLEMENTATION CHALLENGES AND RISKS 36

6.1. Recommendation 11: Provide clear guidance and reinforced technical assistance to weaker administrations 37

6.2. Recommendation 12: Develop a methodological handbook to calculate payout values 38

6.3. Recommendation 13: Formulate milestones to support more risk-prone and experimental activities 38

7. BEYOND THE NATIONAL PLANS: COMPLEMENTARITIES AND SYNERGIES WITH THE EUROPEAN COMPETITIVENESS FUND 39

7.1. Recommendation 14: Ensure synergies between the ECF and the EU Facility 40

7.2. Recommendation 15: Reinforce the financial support for interregional innovative investment (I3) projects and incentivise the adoption of Smart Specialisation Strategies (S3) 41

8. THE ROLE OF THE EUROPEAN PARLIAMENT IN THE ADOPTION AND MONITORING OF THE PLANS AND IN THE USE OF THE EU FACILITY 42

8.1. Recommendation 16: Enhance the EP´s capacity to oversee the implementation of the Plans 43

8.2. Recommendation 17: Give more time to the Parliament and the Council to revise delegated acts 43

8.3. Recommendation 18: Guarantee sufficient involvement of the EP in decisions over the mobilisation of the EU Facility 43

9. CONCLUDING REMARKS 45

9.1. Policy recommendations 46

REFERENCES 48

ANNEX I. COMPARING THE 2021-2027 AND 2028-2034 LEGAL BASIS FOR COHESION POLICY 50

ANNEX II. COMPARING THE 28 FUND’S SPECIFIC OBJECTIVES WITH THOSE OF THE 2021-2027 COHESION POLICY FUNDS 68

ANNEX III. THE TERRITORIAL DIMENSION OF THE FUND´S 28 SPECIFIC OBJECTIVES UNDER PILLAR “PROSPERITY” AND “SECURITY AND DEFENCE” 76