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Spain urges faster EU regional funds spending

Published 23 February 2010
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The Spanish EU Presidency has called for EU funding to be urgently simplified as a means of tackling Europe's economic crisis.

EU regional policy ministers, meeting with high-ranking experts in Zaragoza last Friday (19 February), stressed the need to simplify control and management of regional funds to speed up the completion of projects.

Removing the overly-complex administrative layers involved in applying for and implementing EU regional funds could prove an added weapon in the battle to secure Europe's economic recovery, many ministers argued.

Carlos Ocaña, Spanish Secretary of State for the Treasury, also reiterated Spain’s conviction that EU regional funds should be redistributed to all regions, not merely those at the lower end of the wealth scale.

While Ocaña did favour giving "more attention to the less prosperous regions," he advocated a gradual approach, avoiding a scenario whereby certain regions progress from receiving significant funding to receiving nothing at all.

New regional commissioner outlines plans

Meanwhile, the EU's new regional policy commissioner, Johannes Hahn, had his first opportunity to outline his views to EU ministers.

The Austrian commissioner, who had previously made a decent impression in his hearing before the European Parliament (EurActiv 15/01/10), went into considerable detail as to how he will frame the debate on reforming regional policy.

Above all, Hahn emphasised that a regional dimension must play a central role in the European Commission's forthcoming EU 2020 proposal, "which will guide EU policymaking in the next 10 years".

"Cohesion policy must have a place at the heart of the Europe 2020 strategy. We need to get on the train," he told ministers, adding that "I am ready to explore with you a system which provides more flexibility to countries and regions to define the precise policy mix" to achieve the strategy's priorities.

However, the newly-elected president of the Committee of the Regions (CoR), Mercedes Bresso, countered that turning European regional policy into a mere tool for implementing EU 2020 would be a mistake.

While Bresso stressed that cohesion policy could contribute to the new strategy, she argued that "existing funding and cooperation programmes cannot be turned into vehicles to implement objectives set at central level" in Brussels.

City slicker?

Hahn also appeared to prioritise the needs of cities in his speech. "A cohesive urban policy is critical for a healthy and wealthy Europe […] given that 80% of our population lives in cities," he said.

Indeed, the former mayor of Vienna went into further detail, pointing out that existing funding mechanisms such as the European Regional Development Fund (ERDF) and the European Social Fund (ESF) have a "key role" to play in empowering cities.

In response, Claudio Martini, president of the Conference of Peripheral Maritime Regions (CPMR), told EurActiv that "territorial cohesion must not be restricted to urban areas".

Positions: 

Claudio Martini, president of the Conference of Peripheral Maritime Regions (CPMR) told EurActiv that "we're very pleased to hear Commissioner Hahn's firm conviction that cohesion policy must underpin EU 2020".

"We're particularly glad to hear that he wishes to take on board the macro-regional approach, the development of which is strongly advocated by our members, since it can be an efficient and powerful coordination tool," Martini said.

"We draw attention to the fact that territorial cohesion must not be restricted to urban areas. Though cohesion in deprived urban areas is of utmost and uncontested importance, territorial cohesion – that is solidarity among territories at different scales - must be more broadly understood. Rural areas, or territories with specific constraints, must also be taken into account," he concluded.

A representative of the Assembly of European Regions (AER) told EurActiv: "We welcome the statement by Commissioner Hahn that funds should be available to all regions: European cohesion policy is for all Europeans and should help all regions make the best out of their potential to overcome their weaknesses. AER agrees that cohesion policy should be closely linked to Europe 2020 and recommends that further financial instruments, beyond cohesion policy, are dedicated to this future strategy."

Committee of the Regions (CoR) President Mercedes Bresso highlighted that sidelining regional and local actors had been one of the main reasons why the Union had so far failed to achieve the Lisbon goals. "The Lisbon Strategy was very disappointing and one of the evident reasons for this was its lack of involvement of institutional, economic and social actors on the ground. This message has not been heard, up to a point where the Europe 2020 strategy hardly sees our role as partners. In reality, we are much more than partners: we are the lynchpin of this strategy."

On the issue of simplifying the implementation rules of regional programmes in order to tackle the current economic crisis, Bresso reiterated the CoR's longstanding support for cutting red tape: "In this context, and in times of crisis, I would like to underline that this is not just an issue for administrations and auditors, but also a question of survival for certain regions, for companies that have to undergo restructuring measures and for citizens that work and live in these regions."

Michael Häupl, president of the Council of European Municipalities and Regions (CEMR), argued that "the future EU 2020 strategy as laid down by the European Commission would set us on the wrong track".

The Commission text focuses too much on growth, quantity, productivity and profit. Yet it is precisely an excess of trust in a concept based on these elements that has plunged us into crisis. This needs to be reconsidered: replace growth with development, and quantity with quality. The new strategy should focus on the social reality and specific territorial characteristics within the EU rather than on the mere economy. We should advocate for ambitious changes of our styles of living and producing, not just 'greening' the existing modes and ways," he went on to note.

Häupl concluded that the solution is to be found in an EU 2020 strategy that is based on local needs ("the territory"). However, the entire Commission consultation document neglects to mention local authorities, the level closest to the citizens and at which the different policies are delivered on the ground. In the same way, the text does not mention either territorial development or cohesion policy, he lamented.

Background: 

An overhaul of the current EU regional policy has been mooted for several years, culminating in a 2007 agreement to focus the policy on 'convergence, competitiveness and employment' as well as 'territorial co-operation' (EurActiv 21/05/07). 

An independent report ordered by the European Commission in May 2009 recommended further reform, claiming that current evidence shows the policy's impact to be "unsatisfactory" (EurActiv 07/05/09).

Many regional stakeholders have placed great faith in the ability of the Spanish EU Presidency - which runs from January until June 2010 - to reinvigorate the debate (EurActiv 17/02/10).

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