The acronym 'EGTC' stands for 'European Grouping of Territorial Cooperation'. It allows public entities of different Member States to come together under a new entity with full legal personality.
The European Grouping of Territorial Cooperation (EGTC) was established on 5 July 2006 by Regulation (EC) 1082/2006 of the European Parliament and of the Council and came into force on 1 August 2006.
The EGTC is the first European cooperation structure with a legal personality defined by European Law, designed to facilitate and promote territorial cooperation (cross-border, transnational and interregional cooperation), in view of strengthening the economic and social cohesion of the European territory.
An EGTC may carry out actions of territorial cooperation, with or without a financial contribution from the EU (Art. 7 of the EGTC Regulation).
Specifically, the EGTC is dedicated to the management and implementation of territorial cooperation programmes or projects co-financed by the Community through the European Regional Development Fund (ERDF), the European Social Fund (ESF) and/or the Cohesion Fund. Moreover, it can use all the other financial instruments of the EU, or simply implement tasks without European co-funding.
The EGTC is established and defined by the Regulation (EC) 1082/2006 of the European Parliament and of the Council. This Regulation is complemented by national provisions adopted by each Member State of the EU. The original EGTC Regulation was modified in 2013 (Regulation (EC) 1302/2013)
When an EGTC is created, it is subject to the following Law (Art. 2 of the EGTC Regulation):
- The Regulation (EC) 1082/2006 of the European Parliament and of the Council.
- The provisions of the Convention and the Statutes adopted by the EGTC's members.
- The Law of the Member State where the EGTC has its registered office.
Convention and statutes
The EGTC's members conclude unanimously a convention and adopt statutes on the basis of this convention.
The convention specifies:
- The name of the EGTC and its registered office (located in a Member State)
- The territory covered by the EGTC
- The objectives and tasks of the EGTC
The statutes contain:
- The operating provision of the EGTC's organs and their competencies
- The decision-making procedures of the EGTC
- The working language(s)
- The arrangements for its functioning (personnel management, recruitment procedures, etc.)
- The members' financial contributions
Who can be member of an EGTC?
According to Article 3 of the EGTC Regulation, members of an EGTC can have the following members:
- Member States,
- Regional or local authorities,
- Any other bodies governed by public law.
An EGTC shall be made up of members located on the territory of at least two EU Member States.
The CoR has published a list of entities which may be members of an EGTC in each of the Member States. It may me consulted here.
Governance and budget
An EGTC must have at least the following organs (Art. 10):
- An assembly made up of representatives of the EGTC members.
- A director representing the EGTC and acting on its behalf.
The EGTC members may decide through the statutes to set up any additional organs. One member may be empowered to execute the EGTC's tasks.
The assembly establishes an annual budget.
Added value of the EGTC
The CoR has highlighted the added value of the EGTC
- Territorial cohesion: the EGTC helps to achieve the objectives of the EU as stated in the Treaty of Lisbon.
- Europe 2020: the EGTC can be a a tool to implement the Europe 2020 Strategy, boosting competitiveness and sustainability in Europe's regions.
- Multilevel governance: the EGTC offers the possibility of involving different institutional levels in a single cooperative structure", and thus "opens up the prospect of new forms of multilevel governance, enabling European regional and local authorities to become driving forces in drawing up and implementing EU policy, helping to make European governance more open, participatory, democratic, accountable and transparent.