Brussels, 10/02/2012 (Agence Europe) - Europe's regions are concerned at the effects at local level of the new economic governance, in particular the macroeconomic conditionality proposed in the legislative package for cohesion policy from 2014. Several European associations have expressed their fears. The Danish Presidency of the EU Council of Ministers will take note of these concerns, but it is unlikely that the issue will be resolved during its term of office.
Economic governance. The Association of European Regions (AER) regrets that the crisis, and the need for member states to take action quickly, has detracted from multi-level governance. Developing this theme at the meeting of the Political Bureau in Brussels on Thursday 9 February, the AER is particularly fearful that the inter-governmental method might be gaining the upper hand on the Community method. This was a concern shared by the Committee of the Regions (CoR) president, Mercedes Bresso, speaking at the meeting. She is persuaded that “only governance based on the Community method, on a strong partnership with the regions, and with an institution like the Commission to monitor it can take us to harmonious development stripped of all the structural imbalances which weaken it” and she went as far as to call for “a European economic government”.
Macroeconomic conditionality. What particularly upsets the regions of Europe in the move towards new economic governance is macroeconomic conditionality. The Commission brought in this measure in its proposal on the cohesion package. This would allow structural funding to be suspended if a member state failed to observe financial stability rules. The AER warns against an effect that would do more harm than good to the competitiveness of the regions if they lose funding for projects that have been developed fully in line with European objectives. The Conference of Peripheral Maritime Regions is also singing from the same hymn sheet. At its conference on European solidarity as a driving force behind the development of Europe's territories, in Brussels on Friday 10 February (see related article), it devoted a session to this issue. CPMR Honorary President Joao Alberto Jardim, who is also the president of the Autonomous Region of Madeira (Portugal), said that “it is the real guilty parties who should be punished” and not the regions which would become the victims of the errors of national governments. Carola Gunnarsson, the representative from the Council of European Municipalities and Regions (CCRE) said that she “can't understand how they can reach fiscal discipline by penalising cities, municipalities and regions which provide public services and create jobs. But this is an example from the Commission that they don't trust local levels”.
Presidencies. Polish Regional Development Minister Elizbieta Bienkowska, speaking for the outgoing Polish Presidency of the EU Council of Ministers, highlighted the vicious circle that this measure would bring “as the sanctions imposed would force national governments to reimburse those who receive funding from their own resources, further deepening budgetary imbalances”. Stefan Ilcus, Danish representative on cohesion policy negotiations, closed the conference by stating that the message would, indeed, be passed to the Danish Presidency. He expressed severe reservations, however, that this delicate matter will be resolved before the end of June. The regions will continue to drive forward the debate on economic governance. AER intends to hold a regional summit on the crisis in Europe in June, with other regional networks invited to become involved. (MD/transl.rt)