The focus of current informal discussions in the Council is on how cohesion policy can adjust to the new circumstances following the unforeseen shocks that Europe has faced in the last years without losing its long-term development goals. The Spanish Presidency refers to "Cohesion policy 2.0" in this context, which particularly means that cohesion policy needs to be transformed and become more modern and flexible. Also, it will need to take into account the RRF which will come to an end at some time.
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.
In its 2023 Work Programme, the European Commission announced a proposal for a second basket of new own resources, building inter alia on the proposal for a single set of tax rules for doing business in Europe (BEFIT). The aim of these measures will be to ensure more diversified and resilient types of revenue and avoid undue cuts to Union programmes or excessive increases in Member State contributions, in view of repaying the grant component of the NextGenerationEU recovery plan.
In view of the upcoming proposal that will be published in the third quarter of 2023, the European Commission requested the European Economic and Social Committee to provide an exploratory opinion on this subject in order to feed into the preparation of the Commission proposal.
Since 2016, as requested by the Council, every second year the Commission publishes a report on the implementation of the existing macro-regional strategies (MRS). This is the fourth report, covering the period from mid-2020 to mid-2022. It assesses the state of play and progress on implementing the MRS and examines ways forward especially in the context of the war in Ukraine and the COVID-19 crisis.
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.
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