Brussels, 07/10/2011 (Agence Europe) - The presentation of the next cohesion policy package 2014-2020 by the European Commission on Thursday 6 October (see EUROPE 10468) was followed by mixed reactions. Few support macro-economic conditionality expected to accompany the granting of structural funds, but there are many who praise the determination shown by European Regional Policy Commissioner Johannes Hahn to promote energy efficiency, SMEs and urban development.
The European Parliament has expressed concern about the impact that introducing macro-economic conditions will have. French MEPs of the Greens/EFA Group (N. Alfonsi, J-P Besset, K. Delli, and C. Greze) consider “the proposal to suspend funding to member states that have an excessive budgetary deficit casts a shadow on the quality of this legislative package. The regions, which are taken hostage, should not have to pay for the bad financial management of member states. This sanction imposed on European regions runs counter to the essence of cohesion policy, which is the very expression of European solidarity”. European Social Democrats take the same view of things. They have made it known that their group would “oppose any attempt to breach that solidarity. EU citizens should not be punished for the difficulties of their governments in reducing public deficits as proposed by the European Commission”. This point of view was also shared by the president of the Committee of the Regions (CoR), Mercedes Bresso, who is also concerned about health funding for the regions, saying: “The current crisis has devastating effects on our regions and cities, and EU support has a crucial role to play in their economic recovery. This is why we cannot accept the proposed 'funding suspension' for countries breaching EU deficit and debt rules. Withdrawing EU funding from an already ailing economy will only make matters worse”.
Climate. Connie Hedegaard, European Commissioner for Climate Action, is keen on the proposal to set a lower limit of 20% of regional funds to be invested in energy efficiency, for regions undergoing transition and for the most developed regions. Answering journalists' questions on Friday 7 October, she said renewed cohesion policy would devote €17 billion to the transition towards a low-carbon economy that is better adapted to climate change. Financing would be almost doubled as the current policy allocates no more than €9 billion to this.
SMEs. Similar quotas allocated to competitiveness are also welcomed by the European Association of Craft, Small and Medium-sized Enterprises (UEAPME) whose general secretary, Andrea Benassi, put in: “The administrative and financial procedures linked to structural funds have often discouraged SMEs and their organisations from profiting from funding. Today's simplification proposals and the introduction of a core common set of rules can bring about a change of season”.
Urban dimension. Finally, the associations representing local authorities or towns, such as Eurocities or the Council of European Municipalities and Regions (CEMR), also appreciate the concern for urban development set out in the proposed revision. “Only investment in metropolitan Europe can lead us back into growth”, said Paul Bevan, Eurocities Secretary General. (MD/transl.jl)