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Main results of the EU General Affairs Council on Cohesion, 18 June 2024

Jun 18, 2024 , , ,

Luxembourg, 18 June 2024

Cohesion policy and EU strategic agenda 2024-2029

Ministers exchanged views on the link between cohesion policy and the EU strategic agenda for 2024-2029, set to be adopted by the European Council at its meeting on 27 and 28 June 2024.

Cohesion policy has played an important role in helping the EU achieve its strategic objectives over the years, through investments contributing to competitiveness, social inclusion, the green and digital transitions and industrial transformation in the EU regions. As recalled in Enrico Letta’s report ‘More than a market’, it has also strengthened the single market and ensured that all regions can benefit from it.

Ministers discussed how to ensure that cohesion policy can continue to contribute to the EU’s strategic objectives in the future and how to ensure that all regions, with their specificities and differences, can participate in this process.

During the debate, the speakers raised various ways in which cohesion policy, with its long-term nature, can continue to address the strategic challenges that Europe is facing. They highlighted that it will be important to continue investing in structural measures supporting competitiveness and job creation, and to support regions in the context of demographic changes and the green and digital transitions. Some speakers also highlighted the need to support Eastern border regions in the changed security context, as well as the link between cohesion policy and EU enlargement.

Ministers also stressed that, while contributing to the EU’s strategic objectives, cohesion policy should continue to fulfil its primary objective under the Treaties of reducing disparities between the levels of development of the various regions. To achieve this aim, they considered it crucial to ensure that all regions can participate in the implementation of the EU’s strategic objectives on an equal footing and benefit from this process.

Council conclusions on the 9th Cohesion Report

The Council also approved conclusions on the Commission’s communication on the 9th Cohesion Report, published on 27 March 2024.

The report assesses the state of play of the EU’s economic, social, and territorial cohesion based on a wide range of indicators. It highlights remarkable upward economic and social convergence in many parts of the EU over recent decades, while also pointing to several remaining disparities and challenges.

In its conclusions, the Council takes note of the findings of the 9th Cohesion Report and recalls the various structural and emerging challenges that need to be addressed, while avoiding a widening of disparities across the EU. Such challenges include the green and digital transitions, climate change, migration, the need for EU competitiveness and strategic autonomy in the context of global competition, as well as the geopolitical instability at the external borders of the EU. The Council expresses particular concern regarding demographic challenges and the remaining large socio-economic disparities at sub-national level, where many regions face economic stagnation and development traps. It also highlights the implications for cohesion policy of any future enlargements.

Against this background, the Council invites the Commission to consider appropriate ways to provide tailored support for regions after 2027 to successfully manage those challenges, with a special focus on the green, digital, industrial and demographic challenges and the different levels of socio-economic development.

The Council also reaffirms several key principles that should be preserved in cohesion policy in the post-2027 period, such as shared management, multi-level governance, a place-based approach and the partnership principle. It also underlines the need to further simplify the implementation of cohesion policy and focus on good governance and capacity building in order to ensure that it can best deliver on its objectives.

Any other business

Under ‘any other business’, Czechia informed ministers about the joint declaration of 14 May 2024 on the future of cohesion policy, agreed by 11 ministers responsible for cohesion policy at their meeting in Prague.

Czechia and Slovakia also informed ministers about the ‘Karlovy Vary Statement’ on future support for the transition of coal regions, signed by regional and municipal representatives from 11 EU member states at the Annual Political Dialogue for Coal Regions in Transition on 27–28 June 2023 in Karlovy Vary, Czechia.

Preparatory documents
Outcome documents

Source – EU Council

 

Speech by Commissioner Elisa Ferreira at the Press Conference of the General Affairs Council meeting on Cohesion

Luxembourg, 18 June 2024

“Check against delivery”

Minister-President Elio Di Rupo,

dear journalists,

My thanks to the Belgian Presidency for organising this high-level debate.

It comes at a pivotal moment in the preparation of the EU’s future strategic priorities and the next institutional cycle.

Today we discussed the fundamental role that Cohesion Policy has played and will continue to play in the European project over the coming years.

First, the role in prospective enlargements

The countries that joined the EU since 2004, have seen their GDP per head jump from 52% of the EU average in 2004, to 80% today. This is what the World Bank calls the European convergence machine. And its motor is Cohesion Policy. Candidate countries today are relatively poor, and their administrative capacity is relatively weak. The promise of Europe is quality of life, solidarity, and good governance. Cohesion Policy is key to fulfilling that promise. And for that, the reinforcement of Cohesion Policy is essential.

The second key role of Cohesion Policy is in tackling development gaps

These gaps are still significant within the current EU, and some regions have fallen into what we call development traps. Symptoms include brain drain, often of young, energetic citizens, poor innovation ecosystems, and gaps in the quality of public services. Cohesion Policy is needed to break the trap. However, Cohesion Policy cannot be alone in compensating for blind policies.

Third, Cohesion Policy makes an essential contribution to competitiveness and the vigour of the single market

To keep pace with China and the US, we must mobilise the strengths and potential of every region in Europe, of every player in team Europe. For example, through the Strategic Technologies for Europe Platform (STEP) Cohesion Policy is playing a key role ensuring that every region reaches its full potential in digital technology, green technology, and biotechnology. Cohesion and competitiveness are 2 sides of the same coin. But of course, new challenges require new thinking.

So today we also discussed a range of enhancements to the delivery of the policy. And I proposed some key lessons.

  • First, the lesson that we need tailored responses to the challenges we face: One size does not fit all: our territories require place-based solutions.
  • Second, a modernised delivery system inspired by the lessons from last years but adapted to the unique features of Cohesion Policy. Simplification is needed, but it should not equate to centralisation, but to place-base and delivery at the right level.
  • Third, investments alone are not enough for the economic transformation we need. We must factor in how growth-inducing and cohesion-relevant reforms can be linked to the policy.
  • Fourth, better governance and institutions: Including administrative capacity, not just to manage Cohesion investments, but also to plan and design development strategies.
  • Fifth, further improving the built-in flexibility of the policy: To better react to unforeseen crises, as well as emerging challenges and priorities.

While at the same time maintaining the stable framework for long-term development of the policy.

 Finally, we need to make sure that Cohesion policy and the Treaty objective of promoting convergence and reducing disparities feature prominently in the Council Strategic Agenda for the next 5 years.

I was reassured to see that many in the Council share this vision. Cohesion needs to be seen as a European public good and be properly reflected as a strategic priority because it is a pre-condition for all our other ambitions.

I thank the Belgian Presidency, and President Di Rupo in particular, for his constant engagement in favour of Cohesion policy and for all the work they have done to get us this far. The baton soon passes to the Hungarian Presidency, and I encourage them to use it well.

Thank you.

Source – EU Commission

 

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