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Poverty reduction should be one of the main priorities of the EU's regional policy in the coming decade, according to László Andor, the EU commissioner responsible for employment, social policy and inclusion. Meanwhile, NGOs are concerned that member states' efforts to balance national budgets are pushing more Europeans into poverty.

Local government leaders have spoken out against plans by the European Commission to suspend the payment of EU funds to countries that fail to rein in their national budget deficits and keep a lid on public debt levels. They claim that it is unfair to punish regions for decisions taken at national level.

Any future cuts in EU regional funds could damage the ability of local and regional bodies to balance economic development with vital social and environmental changes, according to outgoing Budapest Mayor Gabor Demszky.

Future cuts in EU regional funds could damage the ability of local and regional bodies to balance economic development with vital social and environmental changes, outgoing Budapest Mayor Gabor Demszky told EURACTIV in an interview.

In a letter seen by EURACTIV, four EU commissioners call on their president, José Manuel Barroso, to bring key EU funds under the same umbrella from 2014, in order to cut out overlap and ensure better strategic spending.

Lawmakers in the European Parliament's regional affairs committee voted yesterday (18 March) to simplify access to the EU's billions of regional funding, saying faster access is vital for tackling Europe's economic crisis. The new rules could be in place by the summer.