ESIF Programme Monitoring Committee force majeure paper: May 2021

Purpose of paper

This paper provides members with an update on the 'force majeure' application submitted to the European Commission (EC) on 29 January 2021. 

The paper will also provide members with an opportunity to consider and discuss how best to utilise the retained funds and build upon the outcome of the application.

Background

Members are aware of the Managing Authority’s application to invoke article 87 ‘force majeure’ of the Common Provisions Regulations (1303/2013) in response to the proposed automatic de-commitment of the European Social Fund (ESF) and European Regional Development Fund (ERDF) programmes for 2020.

The magnitude of the impact on economies caused by the Covid-19 pandemic is unprecedented in modern times. It is therefore essential that vital funds that are of significant importance to supporting Scotland’s most vulnerable communities throughout the pro-longed pandemic period, are not lost to the programme.

These funds will have a significant role to play in the future, supporting the long-term social and economic recovery of Scotland through continued delivery of ESF and ERDF funded projects and activities.

Outcome

The EC have confirmed the successful outcome of the application ensuring there is no de-commitment of funds from the ESF and ERDF programmes. This is a hugely positive outcome for the Scottish programme saving the following:

• ERDF: €28.8m (£24.6m)
• ESF: €25m (£21.4m)

Total: €53.8m (£46m)

Next Steps

Members to consider practical steps that will build upon the success of the force majeure application and minimise any potential future de-commitment of the programme.