EU Funds

Campania, 2014-20 spending at 100% but the Poc is at a standstill pending the cohesion agreement

Without the 400 million from the Development and Cohesion Fund, it is impossible to complete European projects: municipalities risk having to return the resources. For 2021-27 ERDF commitments at 5%.

by Vera Viola

7 June 2024

3' min read

Key points

The 6 billion Cohesion Fund and the tug-of-war with Fitto

3' min read

84% of the EUR 5.5 billion of the European Regional Development Fund (ERDF) allocated to Campania by the EU for the period 2021-2027 has been programmed. And, 'programmed' means that resolutions have been adopted identifying procedures and projects for 4.6 billion.

The programming refers to five axes: 'Research and Innovation', with an endowment of 1.154 billion; 'Energy, Environment and Sustainability', with 2.2 billion, plus 441 million from Axis 2a on urban mobility. This is followed by infrastructure for mobility with 408 million; 'Inclusive development and training' 490 million. On Axis 5, 'Territorial development and regeneration of cities and inland areas' 580 million. Finally, a share of 193 million is reserved for 'Technical Assistance'.

For some axes, the first expenditure commitments have started. For example, in the field of research and innovation, with the call for proposals dedicated to the birth and development of start-ups (30 million). Or in the Quantum Valley on artificial intelligence (100 million), 260 million financial engineering instruments, and incentives for the aerospace sector.

Commitments to date, according to the Campania Region's monitoring, have reached 5% for the ERDF. While for the European Social Fund Plus (ESF+) the Bulletin of the State Accounting Department certifies zero progress.

On the new programming, which is now halfway through, the level of expenditure for Italy as a whole does not reach 1%, a very low level.

These days, in the regions, people are working feverishly to close the 2014-2020 programming that had recognised Campania's share of the ERDF of 4.1 billion and ESF of 837 million. "By 31 December 2023 all the resources have been 100% spent," say the ERDF Managing Authority, "and by 27 May the certification had reached 84%. By October a further 450 million is expected to be certified. Of these, 260 are expenses advanced by the State as Bonus Energia. The remaining part remains to be certified. Therefore," they say in the Region, "this will allow the complex certification of expenditure to be completed without problems in the coming months.

The 6 billion from the Cohesion Fund and the tug-of-war with Fitto

The complementary programmes are a different matter. The Pocs aim to ensure the completion of interventions started in previous cycles and are financed by a share of the resources of the Revolving Fund under Law No. 183-1987 of national co-financing. In any case, there is a certification of expenditure (approximately 1.3 billion) equal to 58% of the financial endowment of the programme, which expires at the end of 2026. And an expenditure of 950 million remains to be certified.

The lack of programming of the Poc 21-27 and the Fsc 21-27, which are synergic with the Fesr 14-20 for the part of the completions, is part of this picture. This means that in order to complete certain projects, it is expected that a further share of financing will have to be called upon, whether it be the Poc or the Fsc both 2021-27. The one, to be clear, on which a tug-of-war, with a judicial trail, has been going on for some time between the Campania Region and the Ministry for European Affairs, Cohesion Policies and the Pnrr . Between Vincenzo De Luca and Raffaele Fitto.

At stake are 6 billion from the Cohesion Fund 2021-2027, 400 million of which are earmarked for the completion of projects, most of which are to be allocated to Campania's municipalities (1.2 billion have already been allocated to Bagnoli). The government's delay in allocating the resources, or the ministry's decision to use them differently, risks shutting down construction sites. In other words, if those resources do not arrive, the municipalities, unable to complete the projects on time, risk having to return even what they have already collected and spent from the EU.

After a ruling by the Campania Regional Administrative Tribunal (Tar Campania) in favour of the region and a suspension order by the Council of State, the latter, in its ruling of 14 May, ruled in Campania's favour and set a deadline of 45 days within which the government must sign the development and cohesion agreement: the deadline will expire on 28 June. Minister Fitto, for his part, replied in these terms: if the technical preliminary investigation closes positively within 45 days we will sign the cohesion agreement, otherwise we will justify the contrary decision.