Brussels, 04/02/2013 (Agence Europe) - With just a few days to go before the European summit, the plenary session of the Committee of the Regions (CoR) again calls on leaders not to make further cuts in the budget allocated to cohesion policy. Local representatives also adopted a resolution on reform of that policy, in which they insert a number of new elements, and the CoR gave its stance on the ongoing review of state aid for the regions, further to a meeting with European Competition Commissioner Joaquin Almunia.
Budget. The CoR held its plenary session on 31 January and 1 February, i.e. one week before the European summit which is expected to set out the EU budget for the 2014-2020 period. The budget for cohesion policy was, therefore, more than ever the focus of concerns expressed by local representatives. They adopted the resolution by Marek Wozniak (EPP, Poland) rejecting any further cuts in cohesion budgets, stressing: “If we are to overcome the current economic crisis, cohesion policy must become an investment policy with both effective spending and a vigorous budget”. The CoR also fears that a cohesion budget reviewed downward would increase the gap that already exists between regions of Europe.
Reform. At the end of the week, however, EU27 leaders are expected also to endorse certain provisions of cohesion policy reform - something that the CoR does not approve of. This concerns the method of funding allocation, the ceiling for co-funding and the safety net. Such provisions do not fall within the co-decision procedure with the European Parliament. The CoR states it is still ready to refer the matter to the European Union Court of Justice should this democratic balance not be corrected.
Furthermore, the consultative body points a finger of blame at other imbalances that the heads of state and/or government ought to correct. This involves the reference made to the period 2007-2009 for determining the level of wealth of the regions, as the regions have been more severely affected by the crisis. There would be distortion in the calculation if the most recent figures were not taken into account, the local representatives deplore. They suggest that calculations should be reviewed in 2016, and also reject the fact that criteria for the allocation of structural funding remains largely based on GDP or GNI.
The CoR is still opposed to macro-economic conditionality, on which the EU27 are due to take a decision during the Summit, and to the performance reserve suggesting a 5% freeze in funding. The CoR insists that the category of “transition region” should be maintained and that a safety net be set in place for the regions that leave the convergence process (i.e. a minimum of 2/3 of their current allocation). The presidents of the regions trust funding will be used in a flexible manner regarding priorities taken on board by the European Commission, and that the cohesion funds earmarked for the Connecting Europe Facility will reflect the rules of cohesion policy and national budgets.
State aid. During the plenary session, the CoR adopted the own-initiative opinion by Jean-Paul Denanot (PES, France) on state aid for the regions. The consultative body underlines that transition regions should be able to use this instrument, and that it should not be solely intended for big business. Commissioner Almunia, who is to present a review of the state aid guidelines, has told the presidents of the regions that this will make it possible to modernise control of public spending and align it with current challenges in order to improve the quality of aid and limit competition distortion in the internal market. A public consultation exercise on this matter is underway. (MD/transl.jl)