The net contributor member states of the European budget will be able to enjoy benefits, thanks to an amendment made to the definition of transition regions proposed by the European Commission for the next European budget, according to a study carried out by the Conference of Peripheral and Maritime Regions (CPMR) published on Friday 2 March.
The authors of the study explain that if the member states select scenario 1 (maintaining the cohesion policy budget at its current level, with the same overall regional cover) suggested by the European Commission on Wednesday 14 February (see EUROPE 11961), some of the first beneficiaries will include net contributors such as Finland, Germany and France.
In this scenario, the Commission is proposing to re-qualify the definition of the 'NUTS II' transition regions, to per capita GDP of between 75% and 100% of the European average. The transition regions are currently those with a per capita GDP of between 75% and 90%, as indicated by the study.
This kind of modification would benefit all the French regions, with the exception of two them, all the Finnish regions, except for one and four German regions, as well three regions in the north of the Netherlands – the country of Prime Minister, Mark Rutte, who wants to make swinging cuts into cohesion policy (see EUROPE 11973).
One source commented, “The Commission has played this well, tactically” and sees this as a manoeuvre by the latter to more easily convince the net contributors to maintain cohesion policy at its current level. This same source pointed out that setting up the transition regions had also been thought about, originally, as a means of winning the major net contributors’ support for cohesion policy - countries that included France, Germany and the United Kingdom.
With or without the United Kingdom
Based on the evolution of regional GDP in 2014, 2015 and 2016, the report also demonstrates a further hardening of regional disparities. On this basis, the authors have envisaged three possible scenarios: a scenario that extends the current system without the United Kingdom; a second scenario with United Kingdom and; the third, with the change in ceiling proposed by the Commission.
According to the first scenario, 40 regions would have their regional category changed, with 21 regions being downgraded, particularly in Greece and Spain but also in Italy, Cyprus and Portugal. The second scenario that includes maintaining of United Kingdom in the EU, paradoxically includes a declassification of 13 British regions, due to the sharp regional disparities this member state suffers from.
To consult the study please see: http://bit.ly/2D0RYhI. (Original version in French by Pascal Hansens)