Changes from report parliamentary committee draft to plenary report

This report has come about because, despite occupying 83 % of the EU territory and being home to a quarter of its population, rural areas are facing serious difficulties as a result of major demographic, economic and social challenges. These difficulties can be seen from the GDP per capita figures, which are well below the European average and point generally to the persistent disadvantage of rural with respect to urban areas.

With its aim to reduce regional disparities and foster balanced development, EU cohesion policy has a key role to play in securing a sustainable future for these areas at risk of being left behind as a result of population ageing, youth emigration, a lack of services, and limited job and social opportunities.

In particular, with this report we intend to vehemently stress the central importance of rural areas to the Union economy, not only as the cradle of food production, but also as guardians of our invaluable cultural and landscape heritage. Protecting and reviving these areas is therefore essential to safeguarding European diversity and ensuring that wider Union progress does not come at the expense of a large share of its territory and people.

It is of paramount importance that policies and tools supporting rural areas are bolstered, particularly through the application in full of Article 174 of the Treaty on the Functioning of the European Union (TFEU), which aims to reduce the development gaps between different regions, with a particular focus on rural, mountainous, insular and outermost areas. Against this background, cohesion policy should be an engine for development and inclusion, and put into effect a series of tangible initiatives and measures designed to meet the specific needs of these areas, supporting their diversity and self-sufficiency, and promoting tailor-made measures that take account of local specificities.

In this regard, the implementation of cohesion policies will need to go hand in hand with closer cooperation among local, regional and national authorities, to ensure that resources and measures are truly able to meet the specific needs of each individual area.

The economic growth of rural areas depends on a whole host of targeted measures ranging from the development of infrastructure – particularly in the fields of transport, energy and digital connectivity – to the promotion of basic services, such as healthcare, education, access to career and economic opportunities, housing and water. A strategic long-term investment in these sectors will contribute not only to improving quality of life in rural areas but also to curbing depopulation, attracting back young people, respecting their right to stay and spurring rural entrepreneurship, particularly in the agricultural and agri-food sector, which remains a mainstay of the economy in these areas.

Infrastructure in Europe’s rural areas is crucial for providing access to key services and promoting economic and social development. In particular, the quality of transport and connectivity should be improved so that people have easy access to schools, hospitals, public services and job opportunities. Road and rail transport links need to be developed and upgraded to reduce the isolation of rural areas and facilitate the mobility of people and goods. It is only through the proper development of infrastructure (particularly in the transport and connectivity sector) that it will be possible to spur growth and improve the quality of life in rural areas. The EU and Member States therefore need to adopt targeted measures and invest sufficient resources to bridge infrastructure gaps, thus supporting competitiveness and social inclusion in these areas. Bridging the digital gap is also key. Boosting digital skills and providing access to reliable online services, such as high-speed internet connections and 5G, will make rural areas more competitive. This will help to bring down emigration by encouraging remote working and online learning, thereby opening up new opportunities.

Aside from transport and connectivity, investments to upgrade and extend energy infrastructure are also essential, as they ensure reliable and efficient access to energy, including renewable energy systems.

One point worth emphasising concerns policies for young people – the main protagonists of the rural exodus. Providing them with better educational, career and social prospects, and improving their access to jobs and business opportunities, is essential to reversing the trend of demographic decline. In particular, cohesion policies should promote greater equality of opportunity between urban and rural areas, so that young people can reach their potential and build a future without being forced to abandon their place of origin.

Support for women in rural areas is also important, as they often face extra challenges, including limited access to job opportunities, a lack of adequate measures to help them juggle work and family, and the shortage of childcare facilities.

What is more, it should be stressed that Europe’s rural areas have a key role to play in the climate transition, as they are on the front line of challenges pertaining to the sustainability and resilience of our continent. The European Union should advance policies that help rural areas steadily adapt to climate change, without jeopardising their capacity to produce basic goods. Against this background, agriculture has a crucial role to play, not only as a productive sector (often synonymous with excellence and quality) but also as a key element in sustainable land management. It is necessary to help farmers innovate and diversify, while at the same time boosting the competitiveness of farms. The transition to a more sustainable model requires a balanced approach: one that is mindful of local specificities and the economic needs of rural communities, without imposing changes liable to hinder their long-term development. This points to the need to provide these areas, as well as businesses, and farm and forest holders, with sufficient financial support, not least to enable them to cope with desertification, isolation and heat waves.

Looking to the future, greater emphasis must be placed on preventive measures to enhance the resilience of Europe’s rural areas in the face of natural disasters. An integrated approach to managing water resources is paramount in order to simultaneously prevent floods and tackle drought – two growing threats in many rural regions. Building new or reinforcing existing dams must be a priority. Although cohesion policy already supports initiatives in this area, new projects and further investment are needed, in line with national and regional risk management strategies, to ensure that rural areas are better prepared for, and able to withstand, extreme climate events.

This report also highlights the role of tourism, which is a major source of income for many rural areas with the potential to draw in growing numbers of visitors curious to discover their culture, nature and traditions through the unique experiences on offer. Investing in rural tourism, in synergy with the agricultural, food and cultural sectors, means not only improved accommodation facilities and a better supply of activities with which to showcase the local produce, culture and identity, but also fresh economic opportunities for local communities, encouraging job creation and entrepreneurship while keeping local traditions alive. It would also be appropriate to support the development and management of rural tourist amenities by making technology more accessible and rolling out digital services to rural areas.

There should be a special focus on small and medium-sized enterprises (SMEs), which are the backbone of the rural economy, making a significant contribution to job creation, economic diversification and social vitality in rural communities. Often active in traditional sectors such as agriculture, crafts or local services, SMEs are also integral to the resilience of rural areas, as they diversify income streams and decrease the dependence on more vulnerable economic sectors. Supporting rural SMEs means providing them with access to the resources, technology and skills they need to grow and innovate. Policies need to be promoted which facilitate access to finance, improve digital infrastructure and foster cooperation, so as to boost their capacity to adapt to economic challenges and to contribute to sustainable economic development in rural areas.

All of this can be achieved only by putting forward a vision for a post-2027 cohesion policy that lays emphasis on promoting regional equality, lowering territorial imbalances and supporting less-developed areas, for the sake of robust and lasting economic, social and territorial cohesion. In this regard, the upcoming multiannual financial framework (MFF) presents an opportunity to devise – in close cooperation with the local, regional and national authorities – a cohesion and growth policy that is more robust, more up-to-date and better adapted to current needs. We therefore stress the importance of the upcoming, post-2027 financial programming period, which represents a key opportunity to channel EU funds towards rural areas. The Commission, co-legislators and Member States need to work closely together to see to it that resources are allocated efficiently and that cohesion policies meet the specific needs of these areas, with a particular focus on tools supporting sustainable growth, youth employment, service improvements and infrastructure upgrades. We are also calling for a strong commitment from the Commission and Member States to mainstream rural issues into future EU policies, so that all policy initiatives are consistent with the goal of reducing territorial disparities.

Aside from the requisite funds, a further push for better regulation is also needed to restructure and reduce the administrative burden and enable beneficiaries (particularly SMEs and rural communities) to access funds more simply and efficiently. Optimising procedures, cutting red tape and enhancing transparency are vital to improving access to the available resources.

To conclude, it is essential to devise long-term strategies to support rural areas, centred on the principles of cohesion and sustainability and providing the necessary tools to address demographic, social and economic challenges, in order to ensure that these areas do not become forgotten places, but rather key players in Europe’s future without needing to continually depend on extraordinary measures.