Europäisches Parlament

Already in 2018 the European Commission has proposed a Regulation on a mechanism to resolve legal and administrative obstacles in a cross-border context for the programming period 2021-2027. At the time, the EESC has adopted its opinion on 19 September 2018, and the European Parliament adopted its first-reading position on the proposal in February 2019. However, the Council's working party on structural measures decided to cease work on the proposal in May 2021. In October 2022, to break the impasse and take the lead on this issue, the EP's Committee on Regional Development started drawing up a legislative-initiative report, calling on the Commission to present a new legislative proposal. The EP voted the report at its September 2023 plenary session.

At the request of the Belgian Presidency of the Council of the EU, the EESC is drawing up this opinion to suggest recommendations on how to tackle inequalities, foster upwards social convergence and strengthen social security systems and ensure its long-term affordability, in an EU economic governance framework/European Semester defined around debt sustainability, productive investments and reforms. This opinion is also focusing on the implications of such a framework for the European Semester, and the further strengthening of the social pillar herein. Finally, the opinion also looks at ways of continuing to further develop fiscal instruments that have a stabilising role at the European level, based e.g. on the experience of SURE.

One of the main conclusions of the 8th Cohesion Report is that although cohesion and convergence among regions in the European Union has improved, there are still remaining gaps especially in less developed regions related with their territorial characteristics. EU islands, mountain areas and sparsely populated areas still face many challenges on their growth and income and disparities exist.

In these regions, there are still a lot of gaps in terms of employment and investment, social exclusion is evident and gender disparities have not diminished.

As committed during the negotiations on the long-term EU budget 2021-2027, the European Commission has on 20 June 2023 completed its proposal for a next generation of own resources. The package includes a new temporary statistical own resource based on company profits. The Commission  also proposes to adjust the own resources proposals based on the Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) compared to the original proposals from December 2021.  

The EESC has issued key recommendations for the mid-term revision of the Multiannual Financial Framework (MFF) 2021-2027. The Committee calls for a prompt agreement on the MFF revision still this year, to guarantee continued financial backing of Ukraine and financing the EU´s evolving political priorities. However, the EESC criticizes the proposed changes as being too limited and lacking ambition, resembling mere patches. It advocates for long-term strategies centred on fiscal sustainability, efficient resource allocation, and measures to guard against unexpected events. Civil society should be engaged for effective planning and monitoring of MFF programmes.

The movement of skilled workers out of regions already suffering from lower economic development may further undermine the growth and development potential of these regions. Such a "brain drain" from vulnerable EU regions therefore may contribute to widening territorial disparities, going against the objective of territorial cohesion set out in Article 174 TFEU. Given the cross-border impact of such developments the Commission considers that action at EU level is necessary.

The Leipzig charter as a strategic part of Urban policy in Europe has recently been modified by the Ljubljana agreement that the Commission adopted on 26 November 2021. It signals the start of a new phase of the Urban Agenda for the EU. In this context, the forthcoming Czech EU Presidency, asks the contribution of the EESC to explore how these changes could impact on the creation of new Thematic Partnerships. Amongst others the Czech presidency is putting forward the following questions:

What should be put into consideration while implementing the new theme of urban communities and the involvement of citizens?

What should be the thresholds to create a functioning mechanism for strengthening the position of citizens and groups of citizens to achieve the targeted cooperative partnerships.

The Communication on 8^th Report presents the main changes in territorial disparities over the past decade and how policies have affected these disparities. It highlights the potential of the green and digital transitions as new drivers of EU growth, but argues that without appropriate policy action new economic, social and territorial disparities may appear. It also launches a reflection on how cohesion policy should evolve to respond to these challenges and in particular how to ensure that place-based, multilevel and partnership led approaches continue to improve cohesion, while building on synergies and mainstreaming cohesion objectives into other policies and instruments.

EESC will present its views on this report stressing the important role that civil society plays and that local policies need local strategies, drawn up with local partners.