Regional yearbook introduction

Planned article update: September 2025.

Highlights

Regional statistics offer subnational comparisons of data. For example, information for the smallest EU countries – such as Malta or Luxembourg – can be compared with regions in larger EU countries.

In May 2023, the European Year of Skills was launched; it ran through to May 2024. This European year provided a focus for investment in professional education and upskilling, to ensure the EU has the necessary skills to contribute towards sustainable growth, more innovation and improved competitiveness.

Eurostat, the statistical office of the European Union (EU), collects, compiles and publishes statistics for the EU, primarily for the regions of EU, EFTA and candidate countries.

This edition of the Eurostat regional yearbook focuses on the European Year of Skills initiative which ran from May 2023 to May 2024. The European Year of Skills put skills centre-stage: helping people get the right skills for quality jobs and helping businesses, in particular small and medium-sized enterprises (SMEs), address skills shortages. The European Year of Skills was designed to help the EU achieve 2 of its social targets for 2030, namely that at least 60% of adults should be in training and at least 78% in employment.

Having a workforce with the skills that are in demand can contribute to sustainable growth, more innovation and an improvement in business competitiveness. These aspects are considered key to ensuring an economic recovery from the COVID-19 crisis alongside green and digital transitions that are socially just and fair. Several chapters in this edition of the Eurostat regional yearbook have a special focus to highlighting skills and related issues.

The impact of Russia's war of aggression against Ukraine and related sanctions, alongside population movements, disruptions to energy markets and global food security, as well as related cost-of-living price increases can be seen in the analyses of 2022 and 2023 data presented in several chapters of the Eurostat regional yearbook. Over the last couple of years, few issues have prompted as much scrutiny as the cost-of-living crisis. The rapid increase in the price of energy and a wide range of essential goods (including food), coupled with relatively high interest rates, had a profound impact locally, regionally, nationally and internationally.

Full article

European statistics

Subnational statistics

EU countries are often compared with each other in statistical presentations. However, in practice it is sometimes difficult to compare smaller and larger countries. For example, Malta had 542 000 inhabitants on 1 January 2023 and Luxembourg had 661 000 inhabitants, while Germany – the most populous EU country – had 84.4 million inhabitants.

There are considerable differences between countries as regards their territorial composition. For example, Ireland, Finland and Sweden are generally rural and sparsely-populated, whereas Malta and the Benelux countries are characterised by much higher levels of population density.

Equally, there can be great diversity within individual EU countries: for example, the densely-populated, urbanised areas of Nordrhein-Westfalen in the west of Germany may be contrasted with the sparsely-populated, largely rural, north-eastern region of Mecklenburg-Vorpommern. In a similar manner, there are considerable differences between regions of France: for example, contrast the bustling pace of life in the economic hub of Paris (which had an average of 20 700 inhabitants per square kilometre in 2022) with the more sedate pace of rural life in the central/southern region of Lozère (which had an average of 15 inhabitants per square kilometre).

As such, examining subnational or regional data can often be more meaningful as it highlights disparities within EU countries. Examples include an east-west divide in Germany and a north-south divide in Italy. By doing so, analyses can reveal significant differences in socioeconomic developments. For example, Germany and Poland principally have polycentric patterns of (economic) development with several, relatively big cities spread across their territory. By contrast, France and Romania are examples of a more monocentric pattern of development, with activity more concentrated in and around their respective capitals.

Over the past few years, Eurostat has expanded the range of statistics that it provides beyond national and regional information to cover other territorial typologies. These alternative typologies address the needs of policymakers, particularly within the context of cohesion and territorial developments. They are based on 2 broad headings

typologies linked to regional statistics, and
typologies linked to statistics for local administrative units (LAU or municipalities).

With this in mind, Regulation (EU) 2017/2391 of the European Parliament and of the Council of 12 December 2017 as regards the territorial typologies (Tercet) established a common statistical classification of territorial units. This legislative consolidation facilitates the collection, compilation and dissemination of European statistics at different territorial levels.

Statistics on regions – the NUTS classification

The classification of territorial units for statistics – known as NUTS – is at the heart of the EU’s regional statistics. It is a classification based on a hierarchy, subdividing each EU country into regions. These are classified according to NUTS levels 1, 2 and 3, from larger to smaller regions.

The 2021 version of the NUTS classification provides the basis for classifying regional information in this edition of the Eurostat regional yearbook. At its most detailed level – NUTS level 3 – the EU is composed of 1 166 different regions. Taking the example of Germany, there are 401 NUTS level 3 regions, which make up 38 regions at NUTS level 2 or 16 regions at NUTS level 1. Some EU countries have a relatively small population and/or area and aren’t therefore subdivided at some (or even all) of the different levels of the NUTS classification. Estonia, Cyprus, Latvia, Luxembourg and Malta are each composed of a single NUTS level 2 region, that covers the whole of their respective territory, while Cyprus and Luxembourg are also composed of a single NUTS level 3 region.

For non-EU countries – EFTA and candidate countries – the concept of ‘statistical regions’ is used instead of NUTS. This applies the same principles as those used in the establishment of the NUTS classification but is based on bilateral agreements between the countries concerned and Eurostat.

Table 1 provides an overview of the number of NUTS regions that exist in each of the EU and non-EU countries covered in the Eurostat regional yearbook. Subject to data availability, national data are used for Bosnia and Herzegovina, Georgia, the Republic of Moldova (hereafter Moldova) and Ukraine.

Table 1: Number of NUTS 2021 regions and statistical regions
Source: Eurostat

Most of the regional statistics shown in the Eurostat regional yearbook are for NUTS level 2 regions. However, subject to data availability, some maps and figures are shown for either NUTS level 1 regions (more aggregated geographical information) or NUTS level 3 regions (the most detailed level of regional information). The latter are only available for a limited selection of indicators that cover topics such as demography, economic accounts, business statistics, tourism statistics and environmental statistics.

The NUTS regulation and classification

The NUTS classification is defined in Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS), which has to be amended by a European Commission regulation each time the classification is updated; in other words, when a new version of the NUTS is needed. The NUTS regulation specifies that there should be a minimum period of 3 years stability during which time the classification shouldn’t be changed. Exceptions are made when the accession (or departure) of an EU country occurs.

Since 2003, the NUTS classification has been amended several times (see Figure 1), due to

regular amendments
changes in the membership of the EU
changes to the territorial boundaries of existing EU countries (for example, the inclusion of data for the French region of Mayotte).

Figure 1: History of NUTS
Source: Eurostat

The 6th amendment of the NUTS classification (Commission Delegated Regulation (EU) No 2019/1755) was adopted in August 2019 and applies to any data transmitted to Eurostat from 1 January 2021 onwards. This version of NUTS – commonly referred to as NUTS 2021 – is the basis for classifying regional statistics in the 2024 edition of the Eurostat regional yearbook. Some data referring to earlier reference periods may have been collected using a previous version of NUTS, although these statistics have been recoded (as far as possible) to NUTS 2021. As a consequence, data aren’t always available for a complete set of regions, for example when the simple recoding or aggregation of data from previous versions of NUTS wasn’t possible.

The 7th amendment of the NUTS classification (Commission Delegated Regulation (EU) No 2023/674) was adopted in December 2022 and applies to any data transmitted to Eurostat from reference period 1 January 2024 onwards. With little or no data having been provided at the time of writing, NUTS 2024 hasn’t been used for this edition of the Eurostat regional yearbook; it is planned that it will be used to classify regional statistics in future editions of the Eurostat regional yearbook.

More about the data: the main principles of the NUTS classification

Principle 1: NUTS favours administrative divisions. If available, administrative structures are used for the different NUTS levels. In those EU countries where there is no administrative layer corresponding to a particular level of NUTS, so-called non-administrative regions are created by aggregating smaller administrative regions.

Principle 2: the NUTS regulation defines minimum and maximum population thresholds for the size of NUTS regions (see Table 2) to ensure a basic degree of comparability. Different rules apply to administrative and non-administrative layers. Deviations from these thresholds are only possible when particular geographical, socioeconomic, historical, cultural or environmental circumstances exist.

Table 2: Population size constraints for NUTS 2021 regions
(number of inhabitants)
Source: Eurostat

Other territorial typologies

Previous editions of the Eurostat regional yearbook have shown a number of other territorial typologies. These allow analyses to be extended so they cover topics such as cities and commuting zones, or statistics compiled by degree of urbanisation – for cities, towns and suburbs, and rural areas. Although these statistics remain highly relevant for policy debate in the EU, an editorial decision was taken when compiling the 2024 edition of the publication to concentrate on regional statistics. Readers interested in subnational statistics that are based on other territorial typologies can refer to 2 Eurostat publications

Rural Europe (online publication)
Urban Europe (online publication).

A short reading guide

Coverage

Each chapter in the Eurostat regional yearbook presents statistical information in the form of maps, figures and infographics, accompanied by descriptive analyses highlighting the main findings. Regional indicators are presented for the following 13 subjects: population, health, education and training, the labour market, living conditions, the digital society, the economy, business, research and innovation, tourism, transport, the environment and agriculture.

The Eurostat regional yearbook contains regional statistics for the EU countries, alongside data for several non-EU countries: EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) and candidate countries (Bosnia and Herzegovina, Montenegro, Moldova, North Macedonia, Georgia, Albania, Serbia, Türkiye and Ukraine).

The geographical descriptions used within this publication to group EU countries – for example, as ‘northern’, ‘eastern’, ‘southern’ or ‘western’ – aren’t intended as political categorisations. Rather, these references relate to the geographical location of 1 or more EU countries, based on the geography domain of the European Commission’s multilingual thesaurus (Eurovoc).

The designations employed and the presentation of material in maps and figures doesn’t imply the expression of any opinion whatsoever on the part of the EU concerning the legal status of any country, territory or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Regional indicators for sustainable development goals (SDGs)

The United Nations (UN’s) 2030 Agenda for Sustainable Development is a long-term strategy that aims to achieve a range of economic, social and environmental goals. The strategy is monitored through a set of 17 Sustainable Development Goals (SDGs) and 169 targets.

Eurostat regularly monitors progress towards the SDGs in an EU context. It coordinates the development of an EU SDG indicator set and publishes regular monitoring reports. Within this edition of the Eurostat Regional Yearbook, regional indicators that may be used to measure progress towards the SDGs are identified through the addition of a logo next to the title of respective figures/maps.

For more information on SDGs, please refer to Eurostat’s dedicated section.

Timeliness

A wide range of surveys and data collection exercises are used when compiling the information presented in the Eurostat regional yearbook. As a result, there may be differences in the latest available reference year between chapters and indicators, as each aims to show the latest information available.

In general, 2023 data are available for demography (as used in the chapter on population), the labour force survey (as used in the chapters on education and training and on the labour market), EU statistics on income and living conditions (as used in the chapter on living conditions) and the information society survey (as used in the chapter on the digital society). Otherwise, the most recent reference period is generally 2022. Eurostat’s website may have fresher data due to the continuous nature of data collection and processing (resulting in updates and new reference periods being added throughout the year). Online data codes are provided below each of the maps and figures as part of the source and these can be used to locate the freshest data.

How to interpret the maps

A majority of the maps in the Eurostat regional yearbook are choropleth maps that use different colour shades to highlight regional differences. These maps are generally composed of 6 sequential colours, from a light yellow (for low values) through to dark blue (for high values). The information presented has been normalised. In other words, rather than show data for absolute values (which could introduce bias linked to the size of each region), these maps are generally based on proportions, rates or ratios. In some cases a larger or smaller number of classes/colours has been used, while in others a different colour scheme may have been applied (for example, when there are inherent colour conventions for a particular indicator).

The class boundaries used in the legend for each map are computed exclusively in relation to the distribution of regional values across the EU (in other words, values for non-EU countries aren’t taken in to account when computing the classes). The boundaries for the lower classes are usually based on the 10th and the 25th percentiles, the middle class on the 50th percentile, and the upper classes on the 75th and the 90th percentiles. As such, the lightest shade of yellow and the darkest shade of blue portrays those EU regions with approximately the lowest/highest 10% of values. For a limited number of cases, several choropleth maps may be shown together (for example, small multiple maps presenting the share of industry, construction, trade and other market services in business economy employment). A common classification scheme is employed for the class boundaries of these maps to assist readers who would like to make comparisons across multiple maps.

Some choropleth maps have been produced using a diverging colour scheme. These maps have been produced to highlight the distribution of regions around a specific EU policy target. They tend to be based on showing 3 shades of teal/turquoise (progressively darker for values that are increasingly higher than an EU target) and 3 shades of gold (progressively darker for values that are increasingly lower than an EU target). For a limited number of maps, the order of the colours in diverging choropleth maps has been reversed. This has been done when there are policy targets that seek to lower (rather than increase) the value of a particular indicator; for example, the EU seeks to reduce the number of early leavers from education and training.

The Eurostat regional yearbook also presents bivariate choropleth maps. These provide information for 2 distinct indicators at the same time (for example, a map showing the number of hospital beds per 100 000 inhabitants and the number of medical doctors per 100 000 inhabitants). This type of map uses 9 different colours/shades organised in a 3*3 grid, from a light shade (that is used for those regions that have low values for both indicators) to a dark shade (that is used for those regions that have high values for both indicators).

This edition of the Eurostat regional yearbook includes other map types.

Proportional circles are used to map regional data based on absolute values (for example, the number of people employed as human resources in science and technology), where the size/area of each circle represents its underlying data. These circles are often coloured to provide complementary information for another indicator.
Hybrid maps are also included, designed to illustrate specific datasets (for example, the top ports in the EU for maritime freight handled and maritime passengers carried).

Metadata

Eurostat’s data are consistently published with accompanying metadata. These metadata provide background information on each of the principal sources, as well as more specific information about particular indicators and individual data cells.

Metadata about individual data cells are usually referred to as flags. They provide information about the status of the data, for example, detailing whether it is estimated, provisional or forecasted. To restrict the amount of metadata that is presented under each map or figure, information about the flags isn’t generally shown in this publication. No distinction is made between data values that aren’t available, are of poor quality, or are confidential; these data points are all simply shown/labelled as being ‘not available’. Readers who would like more detailed metadata are encouraged to use the online data codes that are provided as part of the source for each map or figure.

Missing data

In maps, missing data for regions of any of the EU, EFTA or candidate countries are denoted by a dark shade of grey, while countries outside the spatial coverage adopted for this edition of the Eurostat regional yearbook are denoted by a lighter shade of grey.

In figures, missing data for any of the EU regions are footnoted. To save space, information about missing data for EFTA or candidate country regions aren’t footnoted. Many of the figures presented in the Eurostat regional yearbook are based exclusively on data for EU regions – for example, charts showing the 20 regions in the EU with the highest rates/shares for a particular indicator.

When processing the data and compiling the maps and figures for this edition of the Eurostat regional yearbook missing data were identified. Given the considerable impact of the COVID-19 crisis and its associated restrictions, 2 different approaches were employed to try to fill the gaps for missing data

datasets where the most recent data available concern 2020 or 2021: in these cases, because there could be considerable differences linked to COVID-19 impacts, an effort was made to fill missing cells with higher aggregates of NUTS or with national data rather than making use of data from an earlier reference period
datasets where the most recent data available were for 2022 or 2023: in these cases, an effort was made to fill missing cells 1st with data for the previous year (at the same NUTS level) before making use of more aggregated NUTS levels or national data.

In both cases, the exceptions for different geographical levels or for different reference periods are documented in the notes/footnotes under each map or figure. This is also the case for breaks in series and other major methodological differences.

If maps or figures are based on different territorial levels, any counts of regions that are provided in the accompanying commentaries are systematically based on the territorial levels for which data are available in each country.

Where few or no regional values exist for a particular country, national data have been used to fill the gaps; these exceptions are also documented in notes/footnotes. Furthermore, the source data (online data codes) are adapted so as to reflect any additional national data tables that may have been used.

Policy context

European policymaking is inherently multidimensional: on the one hand, it has to encompass a broad framework providing objectives for the EU as a whole, while on the other it needs to acknowledge the – often specific – needs of national and subnational territories. The territorial dimension of EU policy is increasingly recognised, as job creation and the transition towards a green and digital economy depend on making the best use of all assets.

Recent challenges such as the global financial and economic crisis, security concerns from terror attacks, the refugee crisis, the departure of the United Kingdom from the EU (Brexit), the COVID-19 crisis, the impact of Russia's war of aggression against Ukraine, or the cost-of-living crisis provide just a few examples of the complex nature of delivering EU-wide, national, regional and local solutions in a coherent manner.

Cohesion policy

What is cohesion policy?

The EU’s cohesion policy aims to reduce disparities in development across different regions, with a particular focus on less developed regions. It is one of the key areas of EU investment and plays a crucial role in achieving economic, social, and territorial cohesion. Cohesion policy is a central pillar of the EU's efforts to promote balanced and sustainable development, to help all regions participate in the green and digital transitions and to ensure that no one and no region are left behind.

During the period 2021–27, the framework for regional development and cohesion policy focuses on 5 key investment priorities

a smarter Europe achieved through innovation, digitalisation, economic transformation and support to SMEs
a greener, carbon-free Europe, implementing the Paris Agreement and investing in the energy transition, renewables and the fight against climate change
a better connected Europe, with strategic transport and digital networks
a more social Europe, supporting social inclusion, equal access to healthcare, quality employment, education and skills, while delivering on the European Pillar of Social Rights
a Europe closer to citizens based on locally led strategies and sustainable urban development.

Cohesion policy is delivered through a number of specific funds. They are the main financial instruments used to promote economic, social, and territorial cohesion across the EU

The European Regional Development Fund (ERDF) aims to strengthen economic, territorial and social cohesion in the EU by correcting development imbalances between its regions. It focuses on providing funding for key policy areas such as: innovation and research, the digital agenda, support for SMEs, and the low-carbon economy. The ERDF also supports cross-border and transnational cooperation, under the European Territorial Cooperation objective (Interreg).
The Cohesion Fund (CF) aims to reduce economic and social disparities and to promote sustainable development. Funding is directed specifically infrastructure projects to support
- the development of trans-European networks in the area of transport infrastructure
- energy and transport projects that display clear environmental benefits in terms of energy efficiency, the use of renewable energy, developing rail transport, supporting inter-modality, or strengthening public transport.
The European Social Fund Plus (ESF+) provides support for people, with a focus on improving employment and education opportunities across the EU, as well as the situation of the most vulnerable people (those at risk of poverty).
The Just Transition Fund (JTF) aims to support territories facing serious socioeconomic challenges arising from the transition towards climate neutrality. It is designed to facilitate the implementation of the European Green Deal, with the goal of reducing the EU’s net greenhouse gas emissions by at least 55% by 2030 (compared with 1990 levels) and to make the EU climate-neutral by 2050.

Cohesion policy: how is the budget decided?

Regulation (EU) No 2021/1060 of 24 June 2021 – the Common Provisions Regulation (CPR) – provides a policy framework for 8 shared management funds, including EU cohesion policy funds. These funds continue to fulfil the objectives of promoting convergence and supporting the least developed parts of the EU.

As the main legal basis for cohesion policy, the CPR makes it possible to address emerging economic and social challenges through greater flexibility in terms of transferring resources and extended capacity. Furthermore, through the CPR, all cohesion policy funds – the ERDF, the CF, the ESF+ and the JTF – are subject to the same rules of planning, management and monitoring.

The total budget for cohesion policy and the rules associated with its allocation are jointly decided by the Council and the European Parliament. Political agreement on the legislative package for cohesion policy for 2021–27 was reached at the end of 2020.

A total of €392 billion has been included in the multiannual financial framework for regional development and cohesion between 2021 and 2027. For more information, including a breakdown of allocations by fund and by EU country, see the Budget allocations for EU cohesion policy 2021–27.

More about the data: the NUTS classification – an objective basis for the allocation of cohesion policy funding

Statistics from regional accounts are used in the allocation of cohesion policy funds, with the NUTS classification providing the basis for regional boundaries and geographic eligibility.

During the period 2021–27, eligibility for cohesion policy funds is based on NUTS level 2 regions being ranked and split into 3 groups

less developed regions, where GDP per inhabitant was less than 75% of the EU average
transition regions, where GDP per inhabitant was 75–100% of the EU average
more developed regions, where GDP per inhabitant was more than 100% of the EU average.

The bulk of the budget for the EU’s cohesion policy is provided to regions whose development lags behind the EU average, with the goal of reducing economic, social and territorial disparities. Less developed and transition regions – predominantly located in the south or the east of the EU, the Baltic countries and several outermost regions – benefit from 90% of the ERDF and ESF+ resources.

For the 2021–27 period, the allocation of cohesion policy funds is largely based on regional gross domestic product (GDP) per inhabitant in purchasing power standards (PPS). While GDP per inhabitant is the primary factor used to determine the amount of funding each region receives, a new set of criteria have been added for the 2021–27 funding period to reflect better the social, economic and environmental challenges faced by different regions of the EU. These include youth unemployment, low education levels, climate change, demographic developments or the reception and integration of migrants.

A specific allocation method is used to distribute REACT-EU funds. This is different to the cohesion policy allocation method, taking into account levels of prosperity, the magnitude of economic contraction due to the COVID-19 crisis and the impact of the pandemic on unemployment (including among young people).

Cohesion policy: implementation

Cohesion policy funds are delivered through shared management and partnership, a process which involves EU, national, regional and local authorities, as well as social partners and organisations from civil society (representative and community groups that are independent of government or business). The process is designed to ensure that the funds are used effectively and transparently to achieve the policy's objectives of reducing regional disparities and promoting sustainable development.

European structural and investment funds are attributed through shared management, a process which involves EU, national, regional and local authorities, as well as social partners and organisations from civil society (representative and community groups that are independent of government or business). Each EU country prepares a partnership agreement and subsequent programme(s), setting up relevant development and sectorial strategies and tailoring support in accordance with development challenges and needs. Once negotiated with the European Commission and formally adopted, national/regional managing authorities in each of the EU countries implement these programmes, select operations and monitor and, together with the European Commission, evaluate their impact.

Cohesion policy: integrated into broader policy goals

Across the EU, cohesion policy is embedded within overall economic policy coordination, in particular the European Semester, the digital transition, A European Green Deal and promotion of the European Pillar of Social Rights. These links between cohesion policy and broader policy actions have been strengthened such that regional funding to any EU country which doesn’t comply with the EU’s economic rules may be suspended.

Other policy areas that impact on subnational areas

Urban development policy in the EU

Successful urban developments are often based on coordinated/integrated approaches that seek to balance these dimensions through a range of policy measures such as urban renewal, increasing education opportunities, preventing crime, encouraging social inclusion or environmental protection.

The various dimensions of urban life – economic, social, cultural and environmental – are closely inter-related. Cooperation on urban matters is carried out at intergovernmental level. The work was launched in May 2016, at a meeting of EU ministers responsible for urban matters held in Amsterdam at which an agreement was reached on an Urban Agenda for the EU, as established by the Pact of Amsterdam. The objective is to include an urban dimension in EU policies, and the Agenda’s implementation should lead to better regulation, better funding and better knowledge for cities in Europe. The work in ‘partnerships’ was initially focused on 14 priority areas covering the inclusion of migrants and refugees; air quality; urban poverty; housing; the circular economy; jobs and skills in the local economy; climate adaptation; energy transition; sustainable land use; urban mobility; digital transition; public procurement, security in public space; culture and cultural heritage.

In 2021, a renewal process for the Agenda was started, in line with directions provided by the New Leipzig Charter – the transformative power of cities for the common good in 2020 and its implementing document, leading in November 2021 to the Ljubljana agreement. During this 2nd phase of the Urban Agenda for the EU, 4 new partnerships have been launched so far: on sustainable tourism and greening cities (in October 2022) and on food and cities of equality (in November 2023).

The urban dimension of regional policy may play an important role, notably measures to assist actions against poverty and social exclusion. In this context, the urban dimension of cohesion policy has been strengthened for the period 2021–27

a minimum of 8% of the ERDF is dedicated to sustainable urban development strategies
a new European Urban Initiative (EUI) was launched in the 3rd quarter of 2022 with the goal of supporting cities to innovate, access knowledge and reinforce the capacity for policy development.

Rural development policy in the EU

The European Commission is implementing the Communication on A long-term Vision for EU’s Rural Areas – Towards stronger, connected, resilient and prosperous rural areas by 2040. This vision comes with an EU rural action plan, designed to help rural areas meet a wide range of economic, social and environmental challenges. Under this long-term vision, the European Commission has also proposed a Rural Pact, a framework for cooperation that facilitates interaction on rural matters between public authorities.

In March 2024, the European Commission published a report outlining the progress made in relation to the EU’s long-term rural vision and provided a set of reflections on possible orientations for enhanced support action and financing for rural areas, as well as on the ways forward. It highlights how the EU supports stronger, more connected, resilient and prosperous rural areas and communities. It also provides details about some of the key achievements made so far, including

launching a Rural revitalisation platform for areas facing demographic and economic challenges
guiding around 150 communities towards the creation of smart villages
earmarking a total of €23.5 billion in grants and loans for under-served areas, as well as updated state aid rules to improve rural connectivity
increasing the number of datasets for rural areas, though initiatives such as the Rural Observatory and Eurostat’s publication on Rural Europe
launching the Rural toolkit to help access EU funding.

The EU’s common agricultural policy (CAP) is composed of 2 pillars.

The European Agricultural Guarantee Fund (EAGF) is the 1st pillar. This provides income support and support to agricultural markets.
The European Agricultural Fund for Rural Development (EAFRD) is the 2nd pillar. This is the CAP’s contribution to sustainable development of rural areas.

At the end of 2021, a political agreement was reached on a new common agricultural policy for 2023–27. This legislation aims to make the CAP more environmentally friendly, results orientated and responsive to future challenges, while continuing to support EU farmers for a sustainable and competitive agricultural sector. This latest policy aims to be greener, more modern and fairer and is built around 10 key objectives that are focused on social, environmental and economic sustainability. The objectives include

to ensure a fair income for farmers
to increase competitiveness
to improve the position of farmers in the food chain
climate change action
environmental care
to preserve landscapes and biodiversity
to support generational renewal
to encourage vibrant rural areas
to protect food and health quality
to foster knowledge and innovation.

European Committee of the Regions

The European Committee of the Regions (CoR) – which is the EU’s assembly for regional and local representatives – provides a voice for regions and cities across the EU. During the period 2020–25, the CoR has 3 main priorities

bringing the EU closer to people – democracy and the future of the EU
managing fundamental societal transformations – building resilient regional and local communities
promoting cohesion as a fundamental value – place-based EU policies.

The European Week of Regions and Cities is an annual multi-day event which allows regions and cities to showcase their capacity to encourage growth and job creation, implement EU cohesion policy and support good governance. The 22nd European Week of Regions and Cities will be held 7–10 October 2024 under the headline of ‘Empowering communities’ and will concentrate on 4 principal themes

competitiveness and convergence – 2 sides of the same coin
regions strengthening European democracy
smart and sustainable growth for regions
regions got talent.

During the opening session of the European week of regions and cities, the CoR will present the main findings coming from the 2024 edition of the EU annual report on the State of Regions and Cities in the European Union. It is one of the CoR’s flagship publications providing insights on how regions and cities address crises, showing how regions and cities contribute to the long-term transformation of our societies, with the green and digital transition, while strengthening cohesion.

The European Green Deal

To overcome the triple global crises of climate change, pollution and biodiversity loss, the EU has enacted a new growth strategy designed to transform the EU into a modern, resource-efficient and competitive economy, where

there are no net emissions of greenhouse gases by 2050
economic growth is decoupled from resource use, and
no person and no place is left behind.

The European Green Deal (COM(2019) 640 final) provides details of how the EU plans to develop into a sustainable economy by turning climate and environmental challenges into opportunities, while making the transition fair and inclusive for all.

A Europe fit for the digital age

Digital technology has and will continue to change people’s lives in a rapid manner. The EU’s digital strategy aims to make this transformation work for people and businesses. On 9 March 2021, the European Commission presented a vision for the EU’s digital transformation by 2030. This is based on 4 key points that are the cornerstones of the 2030 Digital Compass: the European way for the Digital Decade (COM(2021) 118 final)

government
skills
infrastructure
business.

European Pillar of Social Rights

The European Pillar of Social Rights was jointly signed by the European Parliament, the Council and the European Commission in November 2017. It aims to take account of changing realities in the world of work, to promote the renewal of economic convergence across the EU, and to deliver new and more effective rights for citizens. The pillar is built around 3 main headings

equal opportunities and access to the labour market – education, training and lifelong learning; gender equality; equal opportunities; active support for employment
fair working conditions – secure and adaptable employment; wages; information about employment conditions and protection in case of dismissals; social dialogue and involvement of workers; work-life balance; healthy, safe and well-adapted work environment and data protection
social protection and inclusion – childcare and support to children; adequate protection for workers; unemployment benefits; minimum income; old age income and pensions; healthcare; inclusion of people with disabilities; long-term care; housing and assistance for the homeless; access to essential services.

These 3 headings cover a set of 20 key principles. On 4 March 2021, the European Commission adopted the European Pillar of Social Rights Action Plan (COM(2021) 102 final) designed to turn the 20 key principles into specific actions, while also proposing 3 new headline targets for the EU to reach by 2030

at least 78% of the population aged 20–64 should be in employment
every year, at least 60% of all adults should be participating in training
a reduction of at least 15 million in the number of people at risk of poverty or social exclusion (compared with the situation in 2019 when there were 91 million people facing these risks).

Sustainable development goals

At the core of the United Nations 2030 Agenda for Sustainable Development, there is a set of 17 sustainable development goals (SDGs). They provide a global policy framework until 2030 for stimulating action in areas of critical importance related to people, the planet, prosperity, peace and partnership.

On 22 November 2016, the European Commission adopted the Communication, Next steps for a sustainable European future – European action for sustainability (COM(2016) 739 final). It detailed the importance of the SDGs, identified EU policies that contribute to the implementation of SDGs, and announced plans for regular monitoring within an EU context. The EU has made a firm commitment towards delivering on the SDGs and on the Paris Agreement on climate change. Within this context, Eurostat has been called upon to monitor regularly the progress towards the SDGs in an EU context. For this purpose it coordinates the development and release of an EU SDG indicator set and produces regular monitoring reports (further information is available in the links at the end of this chapter).

European Year of Skills

In May 2023, the Council and European Parliament adopted Decision (EU) 2023/936 establishing the European Year of Skills (which ran from May 2023 to May 2024). Its overall objective was to promote a mindset of reskilling and upskilling, to address skills gaps and shortages, to boost the competitiveness of European business and to create quality jobs.

The European Year of Skills pursued 4 main objectives

promoting investment in training and upskilling
ensuring the skills of the workforce match the needs of employers, by closely cooperating with social partners and businesses
matching people’s aspirations and skill sets with opportunities on the job market, especially for the green and digital transition and the economic recovery from the COVID-19 pandemic
attracting people from outside the EU with relevant skills that will promote economic growth.

Further information can be found on a dedicated website.

Source data for tables and maps

Regional yearbook – introduction