Brussels, 07/10/2014 (Agence Europe) - The OECD has revealed that the economic crisis has broken the dynamic convergence of the regions in 34 member states. This was illustrated in the OECD regional outlook 2014 and two other public investment and well-being reports in the regions, presented as part of the Open Days event in Brussels on Monday 6 October.
Increasing divide. In more than half of OECD countries, income disparities have increased between regions since 2008, according to the OECD regional outlook, which corroborates the 6th cohesion report published by the Commission in July. The OECD indicates, for example, that in around 10 countries, 40% of national unemployment is concentrated in a single region. In Italy and Spain, these kinds of disparities are even more visible. The studies carried out highlight the fact that it is in the cities where inequalities are most apparent. The Secretary General of this international organisation, Angel Gurriá, said that the crisis had left, “gaping wounds” in population centres, particularly the cities. The OECD is therefore recommending improved urban zone management by reducing journey times between home and work and guaranteeing security, facilitated public service access and a quality environment.
Regional investments. Michel Lebrun, the president of the Committee of the Regions (CoR) commented on these results and stressed that when investment was made in poor European regions, even as part of the European policy, it focused on general state indebtedness, which made it impossible to invest in growth and job creation. He pointed out that the CoR was appealing for, “co-financing immunisation, in an effort to allow poor regions to catch up” and exclude this investment from general state debt. Gurriá, however, warned against the regions and cities getting into debt, which could, in the long term, affect credit risk notation at a national level and subsequently all the economic actors in a country.
On the same day, the Committee of the Regions and the OECD signed a memorandum of understanding to strengthen their mutual cooperation. (MD)