In her own initiative report, "Building blocks of a future EU cohesion policy after 2020", seen by EUROPE on Thursday 16 March, German Social Democrat MEP Kerstin Westphal demands that the new cohesion policy budget be “adequate” and not suffer as a result of “the consequences of Brexit”.
In her report, she warns of the risks to cohesion policy of the growing budgetary constraints faced by both the EU and the member states and of the fall-out from Brexit. She says that cohesion policy will be unable to tackle the new challenges if its budget is smaller than, or even the same as, in the current period.
A policy for all regions. Westphal calls, too, for cohesion policy to continue to cover all regions. She proposes that its main focus should be less developed regions but that it should continue to support those that are more developed. Her view, then, is the opposite of the approach being advocated by some members of the German government who would prefer to see the new cohesion policy concentrate solely on the least developed regions (see EUROPE 11494).
Simplification, grants, EFSI and GDP. The stance adopted by Westphal is not a surprise. She lays emphasis on simplification and suggests a single set of rules for all structural and investment (ESI) funds. She backs the idea of differentiation with regard to checks and audits. She believes that grants must remain the principal method of financing within the policy and argues that no ground be given on financial instruments. Still in relation with the emergence of financial instruments, she warns about compatibility between ESI funds and the European Fund for Strategic Investment (EFSI) and insists on the “additionality” of the two types of instrument. She also calls on the Commission to give consideration to developing indicators other than GDP, suggesting that such alternative indicators may include demography, and social and employment aspects.
Macroeconomic conditionality rejected. Westphal dismisses the principle of macroeconomic conditionality. She calls for the link between cohesion policy and economic governance processes to be reciprocal. She argues, too, that greater recognition of the territorial dimension would be beneficial for the economic and budgetary coordination process, better known as the European Semester. Her position reflects the one expressed by the European Parliament in the structured dialogue on the possible suspension of structural and investment funding to Spain and Portugal (see EUROPE 11736 and 11740).
No proposal to link ESI funds to respect for rule of law. No mention has been made of plans for the future integration of macro-conditions linked to compliance with the rule of law. Yet this is a proposal that has been on everyone’s lips since the idea was suggested by members of the European Commission and the European Parliament (see EUROPE 11736).
Preparing next stage of cohesion policy as quickly as possible. Westphal states that it is “high time” to prepare the post-2020 EU cohesion policy in order to launch it effectively at the very start of the new programming period. The current period has witnessed a great many delays.
Stances adopted by regions and member states. Recently, eight member states signed a joint declaration supporting the continuation of cohesion policy in the next programming period (see EUROPE 11737). The Committee of the Regions commission for territorial cohesion policy and EU budget (COTER) adopted an opinion at the start of this month on the future of cohesion policy (see EUROPE 11738). This opinion is likely to be adopted at the next plenary session in May.
Westphal’s report will be submitted to Parliament’s regional development (REGI) committee on Tuesday 21 March. (Original version in French by Pascal Hansens)