1. The circumstances under which the 2021-2027 negotiations took place were particular. How did the Covid crisis and the war in Ukraine influence the programming process?
We launched preparations for the 2021-2027 cohesion programming early – the legislative proposals were issued in May 2018 and then we started engaging with Member States. In 2019, when we launched the informal negotiations on our 379 cohesion policy programmes, Member States sent us their programming roadmaps. These were very ambitious – almost all expected to have their programmes ready for approval by the end of 2020 to smoothly start implementation from day one of the new programming period. Unfortunately, the Covid-19 crisis hit and prevented this from happening. The Member States’ authorities naturally focused on implementing crisis and recovery measures, including the Next Generation EU recovery plan, in particular the Recovery and Resilience Facility and REACT-EU as these had shorter timelines for implementation. Then the war in Ukraine contributed to further delays. Some Member States’ capacity was taken up by the significant inflow of displaced persons fleeing the war. In addition, the war brought a new challenge to EU – instability in the energy sector.
We finally managed to complete them in December last year. We adopted half of the programmes only in November and December. This means that implementation of the programmes is just starting, two years after the programming period began. However, we remain positive that the implementation will quickly pick up speed and we are supporting the Member States as much as possible in achieving what they envisage in their programmes.
2. Could you summarise the results of the negotiations on the 2021-2027 programmes financed through four of the eight Common Provisions Regulation funds? What are the expected benefits of cohesion policy in the coming years?
In this decade, cohesion policy will remain the EU’s main long-term investment instrument. For the 2021-2027 programming period, our policy will implement a third of the EU’s long-term budget, or EUR 378 billion. This is expected to result in EUR 545 billion worth of investments, including the national contributions.
Under its five objectives, the policy aims to create a more competitive, smarter, greener, more connected and more social and inclusive Europe close to its citizens. In addition, the Just Transition Fund will address the impact of the transition towards climate neutrality. Cohesion policy will advance the green and digital transitions while making sure that no one is left behind. Our policy helps all EU regions become more competitive, while enhancing the social well-being of citizens and supporting provision of basic services in the least-developed areas.
The primary objective of cohesion policy is to help those regions most in need and this is exactly what we are doing. But all Member States receive cohesion funding and benefit from the investments in their less-developed areas. It is foreseen that this funding will increase the EU’s GDP by 0.5 % by the end of the implementation period and that it will continue to have an impact until 2050. Each euro spent on the policy is expected to generate EUR 2.8 of additional GDP in the EU 25 years after the beginning of the programming period. However, the support is not only about growth. It is expected to generate 1.3 million additional jobs by 2027 and support almost 850 000 enterprises and 6.5 million unemployed people. In addition, it will be used to improve the energy performance of 700 000 dwellings and supply clean water to 16.4 million people.
3. Who will mainly benefit from the policy?
Our policy aims at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands. Particular attention is paid to rural areas, areas affected by the industrial transition, and regions with severe and permanent natural or demographic handicaps. Although all Member States benefit from cohesion policy, more funding will go to those regions with a GDP per capita below 75 % of the EU average. The policy will help close the gap between the 10 % most developed and the 10 % least developed EU regions.
Looked at in another way, the aim of the policy is to improve citizens’ lives – contributing to a healthy planet, helping with the digital transition, supporting business competitiveness, skilling and re-skilling, creating quality jobs, increasing youth employment, and supporting vulnerable groups.
4. What are the main differences in the policy compared with the previous programming period? What do the changes aim to achieve?
For the 2021-2027 period, the Commission made simplifications and improvements to ensure that investments are well-targeted and effective. I would like to stress the following ones:
The Just Transition Fund was introduced to the cohesion policy family to help those territories most affected by the transition to climate neutrality, and to avoid growing regional inequalities. The creation of the fund is based on the understanding that the transition towards climate neutrality has to be just, but that the starting points of Member States and regions are not the same.
Our policy is implemented under the partnership principle, which is essential for improving the quality of investments and ensuring democratic accountability and ownership. The European Code of Conduct on Partnership, adopted in 2014, was in force at the preparation phase of the programmes, which ensured the involvement of partners at an early stage.
Cohesion policy 2021-2027 has brought a strengthened bottom-up, place-based approach by empowering sub-regional territories and local communities to identify their own priorities and projects in an integrated and participatory way. This unique approach is one of the policy’s main advantages. To achieve it, the new dedicated policy objective ‘Europe closer to citizens’ will be implemented through territorial and local development strategies.
To ensure that Member States implement policies effectively and efficiently, enabling conditions were introduced. These conditions cover areas including public procurement, state aid, the United Nations Convention on the Rights of Persons with Disabilities, smart specialisation, energy and climate, water and waste, active labour market, gender equality, and education. Through the enabling conditions the policy supports modernisation and reforms in Member States, to increase their competitiveness and resilience to external shocks.
Finally, in order to ensure that cohesion policy investments are aligned with the Green Deal objectives, the investments in the programmes had to newly take into account the ‘do no significant harm’ to the environment principle.
5. Cohesion policy's motto is ‘no one left behind’. Would you explain what it means and share examples?
While focusing on the general goal of reducing development disparities between regions, cohesion policy is inclusive. It supports all EU regions, regardless of their development level or type – urban, rural, mountainous, islands etc. It supports all EU citizens without discrimination, regardless of age and gender.
Besides its main goals of the green and digital transition, cohesion policy continues to deliver basic services such as healthcare, clean water, education, or transport to underdeveloped regions, and promotes the innovation and competitiveness that help sustain our economic and social model. It fights unemployment, creates quality jobs, and provides skilling and reskilling where needed in line with the European Pillar of Social Rights.
As mentioned above, our bottom-up approach helps to achieve our goals, as the Member States, regions, territories, municipalities and local administrations know best what their needs are and where the policy would help the most.
6. You were in DG REGIO when the negotiations for the 2014-2020 period were concluded. How are things different now?
This time we worked with Member States in a very difficult situation caused by the Covid-19 crisis and the war in Ukraine. This placed significant stress on the Member States’ authorities and on our resources. Internally, the main change is the well-functioning matrix system. In 2014, the new system had just been introduced. It ensures that our experts in competence centres and geographical units work together more effectively and brings better consistency and policy awareness. When compared with the previous programming period, I especially appreciate that we have empowered even more local, urban and territorial authorities to manage the funds and that we added the new policy objective ‘Europe closer to citizens’.
