Promoting the growth of the regions

The huge “cake” of funds for European cohesion policy is mouth-watering – there’s no use denying it – for all member states of the EU and for all the regions that comprise it. Through this sector that falls under its responsibility, the Union in fact supports territorial and social development. In view of the new EU financial framework for the period 2014-2020, the Executive has formulated a proposal to make cohesion policy more responsive to the needs for growth that are emerging from the Twenty-Seven.Motor of change. “Cohesion policy has represented a motor for change during the last decade, contributing real added value to growth and convergence in the Union”. To continue these activities in future “and focus greater attention on Europe’s economic priorities”, the Commission approved a legislative package for cohesion and regional policy for the period 2014-2020 on 6 October. “This package is aimed at reviving production sectors and labour in Europe, by allocating EU investments at the agenda for growth, innovation and employment”, a strategy to which the name Europe 2020 has been given. Some priorities to be defined with member states will be pursued through 5 EU funds, explained Johannes Hahn, Commissioner for Regional Policy, who continued: “Cohesion policy has already helped to develop the prosperity of the Union. However, given the economic crisis, it must now become a motor for growth and competitiveness. Our proposals will ensure that the funds in question will be even more effective”. The future investments of cohesion policy will be targeted at some strategic points for growth, including – specified Hahn – small and medium enterprises, innovation and energy efficiency. The Commission’s proposals will now pass to the scrutiny of EU Parliament and Council which together will have to decide by 2012 what projects should be funded through the multiannual budget. The Commission has already proposed to allocate 336 million euro to cohesion policy projects in the period 2014-2020. At the same time negotiations will continue on the multiannual financial framework for the entire budget of the Union. “The final allocations from member states and the list of admissible regions will be decided – warns the Commission – only after the final adoption of the package under review”.The social dimension. These questions among others will be discussed during the so-called Open Days 2011, i.e. the European Week of Regions and Cities, to be held in Brussels from 10 to 13 October. Laszlo Andor, Commissioner for Employment and Social Affairs, has also commented on the cohesion policy guidelines issued by the Executive: “This integrated proposal strengthens the social dimension of cohesion policy by securing minimum shares for the European Social Fund and by strengthening the Globalization Adjustment Fund. Putting people first is an important part of our effort to exit from this crisis. These funds are the financial levers that translate our policies into a reality on the ground for millions of citizens, helping them to find employment and contribute to a job-rich recovery”. These proposals are aimed especially at bolstering “social investment, and empowering people to face future challenges of the labour market; in this framework, the Globalization Adjustment Fund and a new programme for Social Change and Innovation will help to complement and reinforce the European Social Fund”.The results achieved. It is calculated that over the last decade EU cohesion policy (which absorbs a significant slice of the EU budget and is mainly implemented through the European Fund of Regional Development, European Social Fund, European Cohesion Fund, European Agricultural Fund for Rural Development, and European Fund for Maritime Affairs and Fishing) has directly created a million jobs and improved the employability of ten million persons by investing in training and skills. The various funds have further co-financed the construction of over 2,000 km of motorways and 4,000 km of railways. Again by way of example, some 800,000 small and medium enterprises have been created through EU regional policy or have in some way benefited from it. “The focus on fewer investment priorities in line with these objectives – explains the Commission – will be at the heart of the new Partnership Contracts, which member states will agree with the European Commission”. These latter will set clear targets and set aside “a financial performance reserve to reward regions who do best in reaching their goals”. To ensure that the impact on growth and jobs of EU investments is not undermined by “unsound macro-economic policies and by weak administrative capacity”, the Commission can ask to review programmes or suspend the funding if remedial action is not taken.