| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2011) 481 final (1.8.11) |
| Publication Date | 01/08/2011 |
| Content Type | Policy-making |
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The sustained financial and economic crisis is increasing the pressure on national financial resources, as Member States are reducing their budgets. In this context ensuring a smooth implementation of rural development and cohesion programmes is of particular importance as a tool for providing financial assistance to the economy. Nonetheless, the implementation of the programmes is often challenging as a result of the liquidity problems resulting from budget constraints. This is particularly the case for those Member States which have been most affected by the crisis and have received financial assistance under a programme from the European Financial Stabilisation Mechanism (EFSM) for the EURO countries or from the Balance of Payments (BoP) mechanism for non EURO countries. To date, six countries have requested financial assistance under these mechanisms and have agreed with the Commission a macro-economic adjustment programme. These countries are Hungary, Romania, Latvia, Portugal, Greece and Ireland, hereafter called "programme countries". It should be noted that Hungary, which entrered the BoP mechanism in 2008, has already exited in 2010. In order to help these Member States to continue the implementation of the programmes on the ground and disburse funds to projects, the current proposal contains provisions that would allow the Commission to make increased payments to these countries, for the period they are under the support mechanisms, without modifying their overall allocation for the period 2007-2013. This will provide additional financial resources to the Member States at a critical juncture and will facilitate the continuation of the implementation of the programmes on the ground. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0481:FIN:EN:PDF |
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| Countries / Regions | Greece, Hungary, Ireland, Latvia, Portugal, Romania |
