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Europe Daily Bulletin No. 10892
SECTORAL POLICIES / (ae) cohesion

Berlin questions impact of funds on jobs and growth

Brussels, 19/07/2013 (Agence Europe) - The European commissioner for regional development, Johannes Hahn, attended a debate in Berlin on Friday 19 July on the impact of cohesion policy for jobs and growth. The debate, entitled “EU Regional Policy: a Motor for Growth or a Waste of Money?”, was described as “hot” by the commissioner, who defended his portfolio in a net contributor country to the cohesion policy budget (€346 billion in 2007-2013, i.e. one third of the multiannual financial framework). A Commission publication on the success of the structural funds in terms of employment and growth fuelled the debate.

The joint DG Regio and Employment document presented in Berlin indicates that the structural funds for the 2007-2013 period and more particularly the European Social Fund (ESF) were essential tools for safeguarding jobs and sustaining them in times of crisis. The Commission notes that this was the case in particular with the EU12 when the ESF was directed towards active employment market policies, with financing doubling national funding. Looking at the figures - the ESF made it possible for 2.4 million people to find employment after 6 months and for 12.5 million others to be able to benefit from training or assistance.

Structural fund support for SMEs is considerable, too, as 20% of the cohesion budget is intended for such businesses (€70 billion). That money has taken the form of guarantees, loans and services to business.

In terms of growth, the Commission points out that cohesion policy has as much impact in the short term, as it does in the longer term by improving the structure of the economy. It acknowledges that the convergence countries and regions benefit more broadly from cohesion policy but net contributors also derive benefit when they have close trading links with beneficiary economies. The Commission considers that, thanks to cohesion programmes, recipient economies have seen their GDPs increase by 1.2%. (MD/transl.jl)

Contents

SECTORAL POLICIES
ECONOMY - FINANCE - BUSINESS
SOCIAL AFFAIRS - EDUCATION
COURT OF JUSTICE OF THE EU
EXTERNAL ACTION