EU funds for roads - CEDR

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Such issues are:
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The progress of public expenditure (v+2 rule)
Available EU funds are always engaged in specific amounts for every year of the
programming period. Correspondingly, the disbursements of the fund should be in
accordance with the engagements. There is usually a time limit for the absorption of the
available EU funds by the co-financed projects/programmes, which extends up to four years
after the end of the originally foreseen period of financing.
In the case of EU funds operating in the EU there are also intermediate time limits for the
absorption of the yearly engagements of EU funds: the progress of implementation of the cofunded
projects within an Operational Programme (OP) should be such that all EU funds for
the OP are used in the year for which they are engaged plus two 66 more years (the so-called
‘v+2’ rule). EU funds that are not used (absorbed) within these three 67 years are
automatically removed from the Operational Programme and are ‘lost’.
Therefore it is extremely important to programme correctly the implementation of the cofunded
interventions (projects) and to correctly engage the relevant EU funds.
Note: When the ‘v+2’ (or ‘v+3’) rule is violated, funds that have not been absorbed are
removed from the Operational Programme but are still necessary for the completion of its
unfinished projects/interventions. This means that the lost amount of EU funds will have to
be covered by national/own funds. Such being the case, the responsible national authorities
carefully monitor the progress of the projects of the OP and, if they see that some projects
are not progressing as they should, may decide to take these projects out of the OP and
replace them with other, more ‘mature’ projects whose proper timely implementation can be
guaranteed (i.e. under the limitations of the OP).
Macro-economic deviation
Within the framework of the Stability and Development Pact, the EC has the right to put the
Cohesion Fund’s disbursements on hold, when a country does not fulfil its relevant
obligations, particularly as far as the criterion of excess fiscal debt is concerned.
Of course, as a result of the huge international financial crisis that is affecting all countries,
such measures are not expected to be implemented easily.
2.4 How to get a loan from the EIB
The financing of a road (or other) project by the EIB, follows a specific life cycle, presented in
the following figure:
66 For the engagements of the first four years (i.e. the years 2007, 2008, 2009, and 2010) in the new period 2007–
2013, this flexibility is three years (v+3)
67 Or four years; see previous footnote.
EU funds for roads