Brussels, 10 October 2022
Today, at the press conference launching the 20th European Week of Regions and Cities, Commissioner for Cohesion and Reforms, Elisa Ferreira, and the President of the Committee of the Regions, Vasco Alves Cordeiro, recalled the importance of Cohesion Policy’s emergency response to the inter-related crises Europe has been facing and underlined its centrality for the future as a key part of Europe’s growth model.
Commissioner for Cohesion and Reforms, Elisa Ferreira, said:
“Cohesion Policy is the glue that holds Europe together. It is Europe’s biggest investment tool, reaching half a trillion euros. Cohesion acted as firefighter in the Covid emergency and is again a first responder in addressing the social and economic consequences of Russia’s aggression against Ukraine. It will play a central role in tackling the energy crisis, supporting SMEs and vulnerable households, as well as enabling Member States to reduce their dependence from imported fossil fuels and to develop renewable sources of energy. Cohesion is laying the foundation for Europe’s long-term prosperity.”
President of the European Committee of the Regions, Vasco Alves Cordeiro, said:
“Cohesion Policy is the EU’s main long term investment tool strengthening economic, social and territorial cohesion. It has also played a major role for regions and cities to support people during the pandemic and is helping them face the consequences of Russia’s war against Ukraine. As the Committee of the Regions’ Annual Report shows, the importance of Cohesion Policy for local communities is stronger than ever, with 83% of local and regional representatives saying that this is the policy that brings the most added value to their territory. This week is also about debating the future of Cohesion Policy. For regions and cities, it must remain a cornerstone of the green and digital transition, amongst others.”
Cohesion policy fosters convergence
According to the 8th Cohesion report and to the new Working paper on the impact of Cohesion Policy in the 2014-2020 period just published, Cohesion Policy has a significant impact on regional growth. Thanks to its support, in 2019 the GDP gap of Central and Eastern countries that became members after 2004 has halved (from 59% of EU average to 77%). Cohesion Policy funding will increase the GDP per capita of less developed regions by up to 5% by 2023.
In the long term, Cohesion Policy is also benefitting developed regions thanks to interregional spill over effects. Each euro spent on projects supported by the Policy has generated €2.70 of additional GDP in the EU.
A policy at the forefront of the fight against crises
Cohesion Policy has been at the forefront of the fight against crises, such as the Covid pandemic and Russia’s brutal invasion of Ukraine.
Thanks to the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU), Member States have already programmed €45.2 billion for their recovery after the pandemic and are starting concrete implementation on the ground.
With the Cohesion’s Action for the Refugees of Europe (CARE), the Commission has disbursed an additional liquidity of €10 billion to help Member States welcoming refugees from Ukraine. A further €330 million of Cohesion Policy funding is planned to support the needs of refugees.
A boost for energy transition
In 2014-2020, Cohesion Policy has invested about €27.5 billion across the EU directly in key energy projects and critical infrastructures in gas and electricity. This includes LNG terminals in Poland and Greece, major gas pipelines, gas storage facilities and power grids in Central Europe.
Cohesion Policy supported projects in energy efficiency, with about €19.2 billion, of which €15 billion for the renovation of buildings.
Also, the Just Transition Mechanism will help leverage much-needed private investments for upcoming energy efficiency projects reducing Europe’s dependency on Russian gas.
All these investments help mitigating the impact of the energy crisis today.
Background
Cohesion Policy is the EU’s main investment policy representing about one third of the EU budget. The objective of the Policy is to reduce economic, social and territorial disparities within the EU. Recently the policy has also helped EU regions to deal with the consequences of the biggest crises in the EU.
From 10 until 13 October, Brussels will host the 20th European Week of Regions and Cities. More than 15,000 participants will attend onsite and online to the event which will host more than 300 sessions, with over 1000 speakers from across the EU and beyond. The topics of the EU Regions Week are the green transition, territorial Cohesion, the digital transition and youth empowerment.
More information
Working paper on the impact of Cohesion Policy in the 2014-2020 period
2021-2027 long-term EU budget & NextGenerationEU
Questions and Answers on the EU Cohesion policy legislative package 2021-2027
Breakdown of Cohesion Policy allocations per Member State
REACT-EU – Recovery Assistance for Cohesion and the Territories of Europe