Changes from report parliamentary committee draft to plenary report

The Commission published the Ninth Cohesion Report on 27th March 2024, it is therefore the last one before the publication of the Commission proposals for a renewed regulatory framework for the cohesion policy post-2027, expected in 2025. In this context, the rapporteur finds it is particularly important to draw conclusions from the Ninth Cohesion Report’s findings on the progress of the economic, social and territorial cohesion in the EU, against the background of developments and challenges it has been facing over the last years, and those it will likely need to face in the future.

The conclusions of the Ninth Cohesion Report confirm that the EU cohesion policy has a positive and significant impact in terms of convergence. It reduces the disparities among EU Member States and regions not only in terms of GDP level, but also in terms of reduction of unemployment and increase of productivity, it stimulates long-term growth and competitiveness, and it plays a key role in supporting public investment. Cohesion policy’s impact in the longer perspective proves its value as an important long-term investment tool.

Moreover, the Ninth Cohesion Report concludes, that the core principles, namely the bottom-up approach, multi-level governance, and partnership principle are of key importance. The Rapporteur is convinced, that these principles largely determine the policy’s effectiveness, and must be further enhanced. For that reason, it would be a mistake to apply to the cohesion policy a par excellence centralised model, like the one behind the RRF.

Cohesion policy has been a key part of the EU response to numerous crises over the past years. It proved to be a flexible and effective tool, adaptable to unexpected challenges, such as the coronavirus pandemic, or the multidimensional impact of Russian war of aggression against Ukraine. In the future, EU is likely to be confronted with further such challenges, coupled with the impact of natural disasters due to climate change. The Rapporteur is convinced that the policy’s flexibility is a necessity in this context. However, it is of fundamental importance, that the cohesion policy budget is ambitious enough to allow the policy to preserve at the same time its aforementioned core function as the EU’s long-term investment tool.

The subnational disparities and uneven convergence across the regions, with some of them stuck in development trap, remain an issue to be addressed. The Ninth Cohesion Report notes that for each region there is a diversity of reasons behind it. There is also a risk that future challenges might further widen the disparities, as they affect regions unevenly. Cohesion policy must therefore provide solutions allowing for a tailor-made approach to each region.

The Rapporteur notes with concern the situation of regions on the EU Eastern border affected by Russian war of aggression against Ukraine and insists on the need to ensure EU support for these regions, fully adapted to their specific needs.

Climate change is one of those challenges that affect regions unevenly, and the Rapporteur notes the related risk of deepening the disparities linked to the green and digital transition. In consequence, the Rapporteur firmly believes that just transition remains a valid concept, and its financing should be continued. Already for the years 2020-2027 the Cohesion Policy paved the way for supporting transition of formerly coal- and steel-dependent regions, by incorporating a transition-relevant objective into its programmes, and eventually also investing considerable funds into related fields. The Rapporteur notes that also other regions, including those affected by developments in the automotive sector, logistics or related industries and services, would require the same type of support in order to reduce the negative economic impacts of the deep transition process they are undergoing. Just Transition Fund, as one of the EU tools in this area, needs to be part of the cohesion policy, subject to its rules under a common provisions regulation, and with the appropriate level of funding.

The Rapporteur is aware that excessive administrative burden discourages the uptake of funds, and complex rules may contribute to higher error rates rather than an effective protection of EU financial resources. This implies, that there is a need for further simplification of cohesion policy rules and procedures. The Rapporteur insists however, that the simplification needs to benefit mainly the stakeholders implementing the funds, and modifications in this respect must fully preserve the shared management model.

This report comes as the first own-initiative report from REGI Committee in the 10th EP legislative term, just months before the European Commission puts forward its proposals for a new MFF as well as sectoral regulations.

Discussions on the potential evolution of cohesion policy are ongoing, and many stakeholders have already expressed their views. As co-legislator, the European Parliament has great responsibility in shaping the future of this policy, which has a direct impact on the lives and well-being of millions of citizens and businesses, and contributes to the socio-economic development and sustainability of the EU as a whole.

With this report, the Rapporteur intends to take stock of the positions expressed so far by our Parliament on the future of Cohesion Policy, in order to shape a position of the Parliament in the framework of the current discussions and in view of the future negotiations. In this context, the Rapporteur wishes to underline the importance of the work carried out by the members of the Committee on Regional Development in the past, in particular in the 9th term. His work builds on a number of European Parliament resolutions, such as the resolution on economic, social and territorial cohesion in the EU: the 8th Cohesion Report, the resolution on harnessing talent in Europe’s regions, or the resolution on cohesion policy 2014-2020 - implementation and outcomes in the Member States, among others.