As I join EU ministers today in Sofia, we need to remember that the lengthy, complex and arduous task of agreeing the next EU budget after 2020 is not only about money, but about where Europe goes next.
Everyone gathering in Bulgaria's capital will have their thoughts on 2 May when the European Commission presents its proposal for the EU's budget after 2020 with a final decision expected in 2019. It may seem to be a technocratic exercise when in fact it will spell out Europe's priorities, values and level of ambition. If we want an EU that is economically competitive, resilient to future crises, responsive to new challenges and that upholds its international climate commitments, the Union clearly needs more resources. If we want to fight Euroscepticism, be more effective, visible and less centralised. Reducing the main investment tool – EU cohesion policy – is an illogical step backwards that will undermine a stronger future for all Europeans.
We all know EU Member States want to do more together to set up a common defence, control external borders, increase security and better manage migration. But – as mayors, presidents of regions and local leaders – we also know Europe needs to be closer to citizens. It needs to continue to create jobs, reduce pollution, cut energy consumption, and improve waste management. Citizens want to see their mobility, health services and social policies improve and climate change avoided. Meeting these expectations is a challenge, especially given the financial hole the United Kingdom's departure from the EU will create.
Local and regional leaders are working to ensure the voice of local communities is heard in a negotiation that risks losing sight of these basic expectations. Recently the European Commission put several options on the table, two of which included cutting the EU's cohesion policy. EU structural funds, which reduce regional disparities and help create a more competitive, inclusive and sustainable Europe, could be reduced by nearly one-third and limited to less developed countries.
Yet a European Commission report only last year proved it has cushioned the impact of austerity and been an investment lifeline for many regions and cities. The Commission admits that every euro spent on cohesion policy returns €2.70. But it is not only a return on investment: a quarter of cohesion funds are for climate action and since 2014 €16.5 billion has been used for social inclusion projects integrating 1.2 million vulnerable people, including migrants. Crucially, it is the only European policy that brings EU, national, local and regional actors together to shape and deliver growth strategies based on common values. It is the most effective way to show that Europe is about cooperation and can only be built locally, together with our communities. Cohesion policy is delivering Europe locally.
This is why the European Committee of the Regions, together with the main European associations of regions, cities, towns and local authorities, launched the #CohesionAlliance demanding that it continues to be one-third of the next EU budget for all regions, rich and poor. It does need to be simpler, more effective and flexible so it responds to the challenges of the 21st century. It is an investment in our communities that reduces the distance between Brussels and the daily life of Europeans. It is the most powerful weapon to fight fragmentation, protectionism and nationalism that involves every community in building something bigger but something that still belongs to all of us.
It is crunch time: do we want a cohesive, job-rich, sustainable Europe that is built locally, or a Europe that is heard but not seen in citizens' lives? It's time to stop talking about doing more with less as that's impossible. But we can do more and better with the same. An ambitious Europe needs ambitious resources which is why the next EU budget should increase to 1.3% of the EU27's Gross National Income. The future of Europe, our future, is at stake.