19 Creative Europe Programme 2014-20
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| (33448)
17186/11
+ ADDs 1-2
COM(11) 785
| Draft Regulation establishing the Creative Europe Programme
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| Legal base | Articles 166(4), 167(5) and 173(3) TFEU; co-decision; QMV
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| Department | Culture, Media and Sport
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| Basis of consideration | Minister's letter of 9 September 2013
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| Previous Committee Reports | HC 86-vi (2012-13), chapter 1 (27 June 2012);
HC 86-ii (2012-13), chapter 6 (16 May 2012;
HC 428-lviii (2010-12), chapter 1 (25 April 2012);
HC 428-li (2010-12), chapter 4 (22 February 2012);
HC 428-xlvi (2010-12), chapter 7 (11 January 2012)
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| Discussion in Council | Possible agreement in October
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background and previous scrutiny
19.1 The draft Regulation would establish a single framework programme
— the Creative Europe Programme — to replace three
existing EU funding programmes (Culture, MEDIA and MEDIA Mundus).
The new Programme seeks to optimise the potential of the cultural
and creative sectors to stimulate economic growth and job creation
by improving access to EU funds and simplifying their administration.
Our Fifty-first Report of Session 2010-12, agreed on 11 January
2012, provides a more detailed overview of the Commission's proposal
and the Government's view.
19.2 Whilst welcoming efforts to simplify the funding
framework and harness the economic and growth potential of the
cultural and creative sectors, the Government expressed concern
that the budget proposed by the Commission would represent a 37%
increase on current spending levels (€1.8 billion for 2014-20
set against €1.2 billion for 2007-13) and indicated that
it would seek a significant reduction. The Government also questioned
whether the creation of a new loan guarantee facility to improve
access to finance for small and medium-sized businesses and organisations
active in the cultural and creative sectors would be financially
viable (given the relatively small sums likely to be involved)
or have sufficient impact.
19.3 In April 2012, the Government requested a scrutiny
waiver to enable it to support a partial general approach put
forward for agreement by the Presidency, adding that it reflected
the Government's negotiating priorities on job creation and growth
in the cultural and creative sectors, as well as encouraging administrative
simplification while also maintaining flexibility and an appropriate
level of oversight and control. As the partial general approach
excluded the budget for the Creative Europe Programme budget and
the proposed loan guarantee facility, we agreed to grant a waiver.
19.4 Notwithstanding our scrutiny waiver, the Government
subsequently informed us that, although a partial general approach
was agreed at the Education, Youth, Culture and Sport Council
in May, the Government had been unable to support it because selection
decisions determining which projects should receive funding from
the Programme were not included within the formal comitology arrangements.
The Government also told us that it would only be able to determine
whether or not to support the loan guarantee facility once negotiations
on the EU's Multiannual Financial Framework for 2014-20 had been
completed and the budget for the Creative Europe Programme agreed.
This would enable the Government to:
"consider the funding proposed for the Guarantee
Facility in the wider context of the EU's financial settlement
for the period and, particularly, in relation to the amount of
grant funding envisaged in Creative Europe."[67]
The Minister's letter of 9 September 2013
19.5 The Minister for Culture, Communications and
Creative Industries (Mr Edward Vaizey) informs us that the Council
and European Parliament have reached agreement on a compromise
text and indicates that the Presidency may seek formal approval
of the draft Regulation in October. He continues:
"Overall, I consider that the proposed Regulation
represents a good outcome for the UK. It ensures that EU funding
will be focused on actions to promote the contribution of the
cultural and creative sectors to economic development and job-creation
and actions to support and promote Europe's cultural diversity.
I believe the programme will be of benefit to the UK's cultural
and creative sectors and will be welcomed by them."
19.6 The Minister indicates that the Government is
willing to support the loan guarantee facility, adding:
"Following the agreement on the Multiannual
Financial Framework, the programme budget has been significantly
reduced from the level originally proposed by the Commission.
Although it still represents an increase on the funding for the
current Culture and MEDIA programmes, the additional funding will
be used to support new cross-sectoral actions to improve the economic
and business focus of the cultural and creative sectors and to
fund the loan guarantee facility. We support this. I believe
that the new loan guarantee facility will be welcomed by the cultural
and creative sectors in the UK and will help to improve the availability
of finance for the sectors. We will monitor it closely to ensure
that it has the desired benefits and impact."
19.7 The compromise text includes provision for a
budget of just over €1.4 billion, compared with the €1.8
billion originally proposed by the Commission.
19.8 Turning to the comitology arrangements, the
Minister acknowledges that the Government has been unable to secure
its objective of greater Member State involvement in overseeing
selection decisions, but suggests that, overall, a good outcome
has been achieved which "reflects the realities of the negotiating
positions of the Council and the European Parliament." He
notes, for example, that:
"the EP's proposal to use delegated acts for
the annual work programmes — which we considered would present
a higher level of risk — has been successfully resisted.
Conversely, the Council has agreed to allow the use of delegated
acts for changes to the programme indicators — we felt that
this presented a lower level of risk to our interests."
19.9 The Minister continues:
"On balance, I am content that the implementation
arrangements will give Member States sufficient control over the
Commission. Already, in the current Culture programme, the Commission
is able to adopt selection decisions without committee oversight.
Moreover, experience in the current Media programme has shown
that applying comitology procedures to selection decisions creates
scope for people to delay their adoption by engaging in special
— but ultimately unsuccessful — pleading for projects
which have not been selected. The arrangements proposed for Creative
Europe cover all the key elements of implementation over which
we would want to have some influence and control. Although the
final selection decisions are not subject to a comitology procedure,
they will be subject to the provisions of the Financial Regulation,
and there will be an obligation on the Commission to inform Member
States of the selection decisions within two weeks of their adoption.
I am keen not to create unnecessary burdens, bureaucracy or delays
in the implementation of this programme. Subjecting all selection
decisions to formal comitology procedures would not be consistent
with our aim of reducing the administration wherever possible.
Overall, therefore, I am content for selection decisions in Creative
Europe not to be subject to a comitology procedure."
19.10 The Minister expresses satisfaction with the
outcome of negotiations on the two issues on which scrutiny remains
outstanding, and wishes to support the compromise text when it
is put forward for adoption at a forthcoming Council. He invites
us to clear the draft Regulation from scrutiny.
Conclusion
19.11 We thank the Minister for his letter. We
note the significant reduction in the Programme budget (subject
to formal approval of the EU's Multiannual Financial Framework
for 2014-20), as well as the Minister's assurance that sufficient
safeguards are in place to ensure appropriate Member State oversight
of arrangements for implementing the Programme. We agree to clear
the draft Regulation from scrutiny.
67 See letter of 22 November 2012 from the Minister
for Culture, Communications and Creative Industries (Mr Edward
Vaizey) to the Chairman of the European Scrutiny Committee. Back
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