The Commissioner-designate for Cohesion and Reforms, Elisa Ferreira, speaking before the MEPs on Wednesday 2 October, defended the strengthening of the link between the ‘European Semester’ budget process and cohesion policy, as a powerful lever for convergence and consolidation of the Economic and Monetary Union (EMU). She also supported the maintenance of macroeconomic conditions and – albeit with regret – “moderate” budget cuts in the envelope for cohesion policy after 2020.
“I don't like the term structural reforms. It has too many connotations”, the Portuguese socialist admitted to the European Parliament's Committees on Regional Development (REGI), Economic and Monetary Affairs (ECON) and Budgets (BUDG), where there was often fear of a return of a “mini troika” (in reference to technocrats representing institutional creditors who would impose reforms on a euro area country undergoing a bailout).
Nevertheless, according to this specialist in regional policy, but also in economic and financial affairs, the first aim, through the term ‘reforms’, is to promote “positive” policies that might relate to, for example, the modernisation of administration, the improvement of education, health or even forest management.
In her view, territorial disparities represent a real challenge both for the European Union in general and for the EMU in particular. Structural convergence must therefore be encouraged, also to reduce future asymmetric shocks. In this respect, Ms Ferreira pointed out, the “European Semester” has become more territorialised with the recent introduction of this dimension in the country-by-country recommendations (Annex D).
The Commissioner-designate also defended another Common Provisions Regulation – controversial among MEPs (see EUROPE 12193/2) – namely: macroeconomic conditions. For Ms Ferreira, the Juncker Commission has made changes to these macroeconomic conditions for the next budget cycle, so that they take better account of a region's socio-economic situation, an approach that ultimately helps to mitigate their potentially pro-cyclical effects.
The best budget scenario. On the EU budget for 2021-2027, Ms Ferreira did not go along with the MEPs either. “I do not agree with any reduction”, she replied to a Member who was surprised at her satisfaction with the cuts proposed by the Commission, which are 10% for the entire cohesion policy and 46% for the cohesion fund (see EUROPE 12031/15).
For the Commissioner-designate, this is only the “best possible scenario” at a time when the United Kingdom, a net contributor, is about to leave the European Union and new political priorities are being added.
Ms Ferreira highlighted that the ball was in the MEPs' court. “The Commission's proposal is only a starting point for work”, she repeated, stressing that the budget negotiations were only just beginning, before adding that her “eyes are riveted on you” and ensuring that she would do everything possible to defend the “highest possible” amounts.
As for the reduction in the co-financing rates of European aid, Ms Ferreira also defended the arbitrations carried out under the leadership of her predecessor in this position, Corina Creţu.
Just Transition Fund The Portuguese also discussed the project for a new Just Transition Fund which she plans to present in the first 100 days of the von der Leyen Commission. Preparatory work has already begun.
The former MEP seemed hesitant about the scope of the future fund. Will it focus only on deindustrialised and coal-mining regions or will it also cover island regions? In all cases, these will be “targeted” responses, she said.
During the discussions, the Commissioner-designate referred in this respect to a “multiplier” effect, perhaps with reference to the leverage effect making it possible, through a public guarantee, to attract substantial private investment, as shown by the ‘Juncker’ investment plan.
Outermost regions As a citizen of Portugal, whose country has several outermost regions (OMRs), Ms Ferreira stressed her commitment to these remote territories by ensuring greater recognition of their specific nature, as enshrined in Article 349 of the TFEU.
Conflict of interest Finally, Ms Ferreira sought to avoid any suspicion of a conflict of interest between her portfolio and the activities of her husband, Fernando Freire de Sousa, who chairs a body managing Community funds for the Portuguese region of Norte.
Understanding the “misconception” that the close nature of their professional activities could give rise to, Ms Ferreira said that she had written a letter to the President-elect of the European Commission, Ursula von der Leyen.
In this letter, which she read aloud in part to parliamentarians, she indicated that she was prepared to avoid any decision that could lead to suspicions of a conflict of interest with her husband's activities. To do this, the Commissioner-designate asked Ms von der Leyen to decide for her or to delegate a decision to another Commissioner. Ms Ferreira said she was inclined to make more concessions in this area, if MEPs asked for it.
The committee coordinators are meeting on Thursday 3 October at 10 a.m. to evaluate Ms Ferreira's performance. Based on the immediate reactions gleaned after the hearing, it is expected that the majority of political groups will approve the appointment of the Commissioner-designate, the issue of potential conflict of interest with the candidate's spouse being an element to be taken into account as well. (Original version in French by Pascal Hansens)