European Territorial Cooperation funding in a 'no deal' Brexit
Updated 13 September 2019
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This publication is available at https://www.gov.uk/government/publications/european-territorial-cooperation-funding-if-theres-no-brexit-deal/european-territorial-cooperation-funding-if-theres-no-brexit-deal
This guidance provides information for businesses and citizens who:
- want to apply for funding from ETC
- already receive funding from ETC
What the UK government guarantee covers
The government’s preference is to leave with a deal and will work in an energetic and determined way to get that deal. But if it is not possible to reach a deal we will have to leave with no deal. We are making all necessary preparations to do so. An important part of this process is giving certainty to businesses and citizens.
If the UK leaves the EU with a deal in which the EU continues to pay UK organisations that take part in EU programmes, the programmes financed by the EU Budget will continue until their closure. This would mean that all European Territorial Cooperation (ETC) programmes will continue as now and be fully funded under the current 2014-2020 Multiannual Financial Framework.
If the UK leaves the EU without a deal and the EU stops paying organisations, the government has guaranteed to meet the payments for any UK organisation that has already secured, or will secure, funding from certain EU programmes including ETC until the end of the 2014-20 programming period. This covers partners that are in approved projects and includes all projects that have received final approval at programme committee level.
ETC projects require collaboration with organisations based in other EU member states and this complicates the delivery of the guarantee in these cases. With the exception of PEACE IV and Interreg VA, as set out below, the UK is yet to agree a framework for continued participation in other ETC programmes that will enable UK organisations to deliver projects as now in a no deal. We are therefore taking forward alternative plans in case the UK continues to be unable to participate in ETC programmes in a no deal, leading to UK project partners being unable to deliver their projects.
How the guarantee will work
The extension to Article 50 means that the UK will continue to have all the rights and responsibilities of an EU member state until Brexit. During this extension, UK organisations remain eligible to bid for funding, and approved project partners should continue delivering and making payment claims throughout the programme period. The extension period is designed to ensure that a withdrawal agreement is in place before Brexit, but in the event of a no deal, the government guarantee is in place for UK project partners.
In the event that the UK leaves the EU without a deal, the EU has published a regulation to enable the continuation of the PEACE IV and Interreg VA (Ireland, Northern Ireland, Scotland) programmes. The UK, the Irish Government and the EU have noted their commitment to the funding of both programmes regardless of the outcome of negotiations on the UK’s withdrawal from the EU. This reflects the UK’s ongoing commitment to support peace and reconciliation on the island of Ireland.
In the event that we cannot reach an agreement with the EU to allow the UK to continue to contribute to ETC programmes as if it were a member state it may mean that UK organisations are unable to continue in ETC programmes (other than PEACE IV and Interreg VA) as they might not have access to the programmes. We will keep you updated as the position on this develops.
In these circumstances we will work with affected UK organisations to find an appropriate solution. This could include collaboration with existing EU partners, or else with new UK partners, or potentially as standalone activity. Further information on help that is available can be obtained from the relevant UK authority, whose details are set out below.
EU Contingency Regulation
As part of its no deal contingency measures, on 9 July the European Council adopted a regulation that would allow the UK to continue participating in EU programmes, including ETC, in 2019, in return for continuing to contribute to the 2019 budget.
On 4 September, as part of its updated preparations for a no deal scenario, the Commission published a separate draft regulation that, if adopted by the Council, would allow the UK to continue participating in EU programmes, including ETC, for 2020, in return for continuing to contribute to the 2020 budget.
The government is currently analysing these proposals and their implications. These proposals are separate from the government guarantee.
Actions for project partners in approved projects
UK project partners in approved projects should continue delivering their project activity as contracted, including continuing to make payment claims to Managing Authorities for reimbursement by the European Commission.
In the event that we can’t reach an agreement with the EU to allow the UK to continue to contribute to ETC programmes as if it were a member state, the UK authorities who are responsible for coordinating arrangements for programmes the UK takes part in will provide further information for affected UK organisations. If you have any general questions or concerns in the meantime, please contact:
- ETCteam@communities.gov.uk where the UK programme contact is the Ministry of Housing, Communities and Local Government (MHCLG) (see the table below)
- enquiries@beis.gov.uk for all other enquiries
Actions for applicants
Organisations interested in applying should consider the information in this technical notice and discuss with contact points / facilitators. Our contact points and facilitators remain in place to help you apply for funding.
More information
Overview of ETC
The current ETC programmes support projects that enable businesses, universities, local and regional authorities and the voluntary and community sectors in different countries to work together on shared issues.
These programmes bring together organisations, across Europe, to collaborate in designing new solutions and approaches to economic, societal and environmental issues. Projects draw from pan European knowledge and expertise of the participating groups and individuals. A range of priorities are supported including:
- business competitiveness
- innovation
- renewable energy
- health
- transport
- tourism and culture
- climate change and the environment
The UK participates in 15 ETC programmes, for which the Department of Business, Energy and Industrial Strategy (BEIS) oversees the overall policy and coordination across the UK.
The Ministry of Housing, Communities and Local Government (MHCLG) oversees UK interests in the 9 programmes set out in the table below. UK interests in the other 6 programmes are overseen by the Devolved Administrations or HM Government of Gibraltar. Further details of programme oversight are provided below.
Oversight of ETC
This table shows the managing authority and the UK programme contact for ETC programmes. It shows how ETC programme oversight is shared across the devolved administrations and Gibraltar.
| Programme | Managing authority | UK programme contact |
|---|---|---|
| Channel | Norfolk County Council | MHCLG |
| Two Seas | Hauts de France, Lille | MHCLG |
| Ireland-Wales | Welsh European Funding Office | Welsh Government |
| Interreg VA | Special EU Programmes Body | Northern Ireland Executive |
| PEACE IV | Special EU Programmes Body | Northern Ireland Executive |
| North West Europe | Hauts de France, Lille | MHCLG |
| Atlantic Area | Regional Council of North Portugal | MHCLG |
| North Sea | Danish Business Authority | MHCLG |
| Northern Periphery and Arctic | County Administrative Board of Vasterbotten | Scottish Government and Northern Ireland Executive |
| Mediterranean | Provence-Alpes-Côte d’Azur Region | HM Government of Gibraltar |
| South West Europe | Cantabria Government | HM Government of Gibraltar |
| Interreg Europe | Hauts de France, Lille | MHCLG |
| URBACT | French Government | MHCLG |
| INTERACT | SG Region Bratislava | MHCLG |
| ESPON | Luxembourg Government | MHCLG |
Current delivery arrangements
Organisations in different EU countries apply together for funding on a competitive basis. If the application is approved, a single organisation acts as the lead partner for the whole project, on behalf of all other organisations who are involved in that project.
Each ETC programme is managed by a managing authority. The managing authority monitors the delivery of projects. The lead partner signs an agreement with the managing authority of the programme, with a partnership agreement governing relationships between all project partners. The lead partner coordinates the claims and payments for all project partners through a process that involves the managing authority and the European Commission.
The UK has 2 UK-based managing authorities and 1 joint North-South managing authority between Northern Ireland and Ireland. These managing authorities manage programmes on behalf of the EU countries who participate in each programme.
The ETC programmes are funded by the European Regional Development Fund (ERDF), via contributions by the UK, other EU countries and third countries (non-EU countries). Projects also receive supplementary funds from private co-financing.