Delrio: “We need to release more resources from the Stability Pact”

We need to “release more resources for the constraints of the Stability Pact” said Graziano Delrio during a hearing at the Budget Committee of the Italian Upper House, to which he was summoned for a report on 2007 – 2013 European structural funds. The Undersecretary added that the government hopes “to spin co-funding off the calculation” for respecting European constraints. Basically, Delrio admitted that accepting Angela Merkel’s line on “flexibility already contained” into rules, the government is just trying to make the best of a bad situation. Because “it hopes” those rules will be amended.

This hope originates from the idea of the “Stability Pact as a criticality” for the capability of spending European funds. Several regions cannot exploit those funds because they cannot co-fund the same amount of money, otherwise they could exceed the constraints established by the Pact.

Given the current balance of power, Delrio (and the entire government likewise) is aware that rules, nowadays, won’t be amended. A confirmation came from the EU reject of the Italian request of accessing the ‘investment clause’ to free 3 billion euro. Then, we need solutions “capable of exploiting flexibility.” For instance, said the Undersecretary, “we need to increment the Compensation Fund” which is out of the Pact constraints. “This would help several regions to find the resources they need to spend the residual European funds.”

We are talking about “21 billion euro to be spent by the end of 2015” said Delrio. “Of those, 5.7 billion euro must be certified by the end of the current year.” As he added, “it is not unusual” to have residual funds, “given that the expense activity has been often concentrated in the last two years.” The unusual thing is the amount of money still to be spent: “An excessive sum.”

The use of Structural Funds is not impeded by the Stability Pact only: regions are guilty, too. Delrio listed their faults as “inadequate planning” and “delays” of investment programming. Dealing with the first aspect, it is necessary to “plan an overbooking,” said the Undersecretary, to approve a percentage of projects higher than the available funds. Was a project to be stopped for any reason, there would be another to which funds could be allocated instead.

The government plans to manage delays with the intervention of the Agency for Cohesion. Planned by the former government, the Agency is about to begin its activity. “Its statute has already been approved,” announced Delrio, “and we received some curricula. We’re evaluating them and we’ll appoint a Director shortly.” The Agency follows the line of a strengthening of controls on how Italian Regions spend European Funds. It will have to monitor the planning stage, for “taking off any criticality” during this phase already.