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Doubts grow over future EU budget for regions

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Published 01 October 2010, updated 21 October 2010

As discussions intensify on the post-2013 EU budget, high-profile supporters of European regional policy, meeting in Brussels next week, are worried that regions will lose both funding and prominence in the coming years.

Should regional policy still get one-third of the EU budget after 2013? Will it remain one of the Union’s preferred ways to achieve its economic and development goals?

These questions are set to dominate next week’s Open Days in Brussels, where 6,000 regional stakeholders and policymakers will gather to discuss the policy’s future.

Many leading regional policy players fear a reduction in funding from 2014, when the EU's next seven-year  budget framework will start to apply. They have been increasingly vocal in defending the policy’s role.

In an interview with EurActiv.pl, Polish MEP Danuta Hübner, former European Commissioner for Regional Policy and current Regional Development Committee Chair of the European Parliament, explained that she hopes that high-profile backers, such as herself, "will successfully defend regional policy".

In the European Parliament, Hübner has been battling to strengthen recognition of the policy among MEPs "and build support for it". In her opinion, some member states, "notably the UK and the Netherlands, and to a lesser extent Sweden" have "objected to the very existence of regional policy".

Contrastingly, argued Hübner, "Germany, despite being the largest net contributor to the EU budget, has a very positive attitude towards cohesion policy and regional policy".

Will Objective 2 regions be left out in the cold?

The former commissioner believes the reformed post-2013 policy should maintain its current share (one third) of the EU budget, and should strive to provide appropriate funding for all regions, not only the poorest regions.

Regional Policy Commissioner Johannes Hahn appears to be singing from the same hymn sheet. A recent draft of the long-awaited fifth Cohesion Report on economic, social and territorial cohesion, scheduled for publication in November and seen in advance by EurActiv, reaffirms the EU executive’s policy of supporting transition regions.

However, this could change between now and November, as budget discussions continue in Brussels. As a result, EU regions, worried that such an about-turn could occur, are making their voices heard.

The State Government of Lower Austria has been leading the way, collecting 141 signatures from leaders of so-called RCE regions (Regional Competitiveness and Employment, or "Objective" 2) - areas close to the EU GDP average which face particular development obstacles - urging EU leaders to protect their status.

Ilse Penders-Stadlmann, head of the State Government of Lower Austria’s Brussels office, told EurActiv that 85% of all RCE regions had signed the letter. "It underlines the political importance of cohesion policy to the regions," she noted.

This position was echoed by Robert Collins, head of the Irish Regions Office in Brussels, who told EurActiv that "our concern is that Cohesion Policy post 2013 will be restricted to the very poorest regions with little consideration given to the uneven impacts that the current economic crisis is having across the EU".

He added that "our regions continue to experience negative growth and face serious economic and unemployment challenges, which if the Objective 2 (Competitiveness and Employment ) strand is not continued will leave regions, such as the Irish regions, without support from Cohesion Policy as a time when they may need it most".

Positions: 

Ilse Penders-Stadlmann, head of the State Government of Lower Austria's Brussels office, gave three pieces of evidence to demonstrate why she believes EU leaders have been downgrading the importance of regional policy:

  • "The 1st non-paper of the European Commission services from October as regards the EU 2020 strategy didn't include cohesion-policy".
  • "It took a lot of efforts from the main regional actors such as Commissioner Hahn, supported by MEP Hübner as chair of the EP Committee on Regional Development, CoR President Bresso and the regions via bilateral meetings to make clear that regions have an important role as regards the objectives of the EU 2020 strategy".
  • "Recent letters from President Bresso, MEP Hübner and also Commissioner Hahn – some as recent as August 2010 - prove that further actions and evidence are still necessary to convince President Barroso and most probably other commissioners, but also the member states, that cohesion policy remains an important policy area beyond 2013, and that the Regional Competitiveness and Employment objective of Cohesion Policy is one of the best European instruments to fulfill the EU 2020 objectives in regions with positive effects for the whole of Europe."

Gerry Finn, director of the Border Midlands West Regional Assembly in Ireland explained that "for our region the funding we receive under Objective 2 is used to support tailored, place-based interventions to help realise development potential. This reflects EU Regional Policy's crucial contribution to wider European goals of creating the conditions for competitive regional economies in which employment can flourish – in line with new ‘Europe 2020’ Strategy for smart, sustainable and socially inclusive growth".

Next steps: 
  • 4-7 October 2010: Open Days event in Brussels.
  • Nov 2010: Launch of 5th Cohesion Report.
Background: 

The goal of European regional policy is to reduce the gap between the development levels of the various regions via so-called economic and social cohesion.

Cohesion policy for the 2007-2013 period accounts for approximately a third of the total EU budget. A full list of EU regions, and which forms of funding they are eligible for, is available here.

EurActiv produces regular news stories on EU Regional Policy, in particular concerning how the debate on the post-2013 regional (or cohesion) policy is evolving and intensifying in Brussels and beyond.

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