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EGTC for Article 37(6)(b) Actions

The EGTC instrument is available for any type of EU-cofinanced cooperation activity dealing with social and economic cohesion. So, why not using the EGTC for management of cooperation projects in Objective 1 and 2 programmes?

The EGTC, a suitable instrument for structuring article 37(6)b interregional partnerships

Article 37(6)b of Regulation (EC) No 1083/2006 makes it possible for Objective 1 and 2 programmes to finance interregional cooperation actions with at least one local or regional authority of another Member State.

Although not compulsory, it is possible to create EGTCs in the framework of this new type of interregional cooperation:

a) to manage interregional actions of the participating regions, or

b) to manage, through a global grant (according to Art. 42-43 of 1083/2006), the parts of each operational programme involved, which are dealing with interregional cooperation

Compatibility between EGTC and Article 37(6)b

EGTC is open to cross-border, transnational and interregional cooperation, in the field of economic and social cohesion, in the European Union;
EGTC is open to regional and local authorities (among others);
EGTC can run projects/actions, programmes or global grants;
EGTC requires participation of at least two members from two EU Member States.

The advantages of the EGTC

Pooling human, technical and financial resources together

a) For an interregional action:

Putting together the budgets of each regional project into a single pot of money. The budget is managed by the EGTC, according to the management and control rules of the Member State of the EGTC (and of course applicable community rules). The assembly of the EGTC acts as project steering committee and is composed of representatives of the participating partner regions.

Using that common budget for hiring staff, organising joint public procurement, apply as EGTC for EU projects (interregional or transnational). The EGTC can manage the total budget of the interregional actions (ERDF contributions of each partners plus national co-financing shares).

b) For an interregional global grant:

Putting together the budgets of each regional priority into a joint global grant. The global grant is distributed to interregional actions of the participating regions, based on centralised calls for proposals, a single set of selection criteria, a joint selection committee, a unique type of subsidy contract signed between the EGTC director and the beneficiaries in each participating region. All actions financed under the joint grant would observe similar eligibility rules, those of the Member State of the EGTC (and of course applicable community rules).

The budget of the global grant shall be used for financing of the actions. The functioning of the EGTC can be financed from the technical assistance (TA) budget of the participating programmes: this TA budget can be used for hiring staff to manage the calls, organise information sessions for applicants and/or training for project beneficiaries.

Sustainability and visibility for partnerships.
A stable framework, e.g. for lobbying and for establishing relationships with third parties

A growing interest

Thus far article 37(6)b has not been used in many regions of the European Union, but where used, there is a growing interest for ensuring sustainability of the partnerships created. The Rur@ct network, for instance, is currently assessing the possibility of creating an EGTC to implement a longer-term cooperation. The expected advantages: strengthen the partnership, formalise cooperation and ensure its continuation even after 2013. This would be the first interregional EGTC in the framework of article 37(6)b.

Cooperation can also be organised differently

Because recourse to EGTC is optional, interregional partners may be willing to assess different options for their cooperation. For instance, if partners decide that creating a specific structure is too long, complex or simply not needed, a cooperation agreement between participating regions/countries for coordinated calls (period, content, eligibility and selection criteria) may be sufficient. Participating regions may also set up a special article 37(6)(b) office like in Thuringia (“Thurigian Coordination office for transnational and interregional activities”).