Reports
Date: 01 jun 2023
Theme: Employment and social inclusion, Environment, Cohesion policy 2021-2027, Research and innnovation, Inclusive growth, Business support, Competition policy, Education and training
Languages: en
The sustainable development of all regions is key for economic prosperity, social welfare, and the competitiveness of the EU as a whole. Various EU policies, in particular cohesion policy, have contributed to significantly reducing disparities between the levels of development of the various regions in the last decades. This effort continues daily.
In most Member States, important persistent regional asymmetries need to be addressed. The European Commission’s 2023 country reports and their “Annexes 17 – Economic and Social Performance at regional level” highlight significant asymmetries between EU regions, particularly concerning access to basic public services, employment and unemployment rates, competitiveness, and productivity. Member States such as Czechia, Bulgaria, Estonia, France, Spain, Hungary, Italy, Latvia, Lithuania, Slovakia, and Portugal register regional disparities in access to education or public transportation. Disparities are further accentuated in rural areas where access to basic public services remains generally a challenge. Disparities in labour market outcomes (i.e. employment and unemployment rates) and competitiveness are also found in Austria, Belgium, Germany, Bulgaria, Czechia, Germany, Hungary, Poland, and Portugal, whilst also significant gaps remain concerning research and innovation (R&I). Differences in digital or energy efficiency persist in Bulgaria, Czechia, Greece, Croatia, Italy, Portugal, and Slovakia.
Along with the Recovery and Resilience Facility (RRF), cohesion policy remains key for supporting reforms and growth-enhancing investments in the years ahead. The peaking implementation of the 2014-2020 cohesion policy programmes (EUR 405 billion) in parallel with the launch of the 2021-2027 programmes (EUR 378 billion) provides a continuous stream of investment in people and businesses. Since the outbreak of the pandemic, cohesion policy programmes have disbursed more than EUR 186 billion to increase resilience and boost (upwards) social and regional convergence. The requirement for Member States to fulfil enabling conditions before the disbursement of EU funds has supported the reform agenda. Furthermore, the European Commission supports the Member States and regions via the Technical Support Instrument (TSI), including through a new flagship initiative to overcome barriers to regional development. This will focus on three areas: improving the quality of governance and public services; strengthening productivity, innovation, and green transition; and harnessing talent and employment opportunities.
Cohesion policy programmes are adapted to the specific needs of different categories of EU regions and are in line with the investment guidance outlined in the European Semester. The European Semester country reports highlight the regional dimension of the EU’s growth and resilience agenda and the potential challenges and responses to regional disparities in the delivery of the four dimensions of competitive sustainability: promoting environmental sustainability; productivity; fairness; and macroeconomic stability.
Developing people-based and place-based policies is key to the EU’s overall prosperity. By identifying the specific challenges of each Member State at regional level, the European Semester country reports highlight the importance of taking into account different growth and convergence models as well as of tapping into the growth potential of each region, in order to deliver investment effectively. People-based and place-based policies – and mobilising all EU funds in line with the “do no harm to cohesion” principle – will increase regional and national competitiveness and are therefore key to the EU’s overall prosperity.