PR_INI



|European Parliament |[pic] |

|2014 - 2019 | |

Plenary sitting

A8-0277/2015

{30/09/2015}30.9.2015

REPORT

on cohesion policy and the review of the Europe 2020 strategy

(2014/2246(INI))

{REGI}Committee on Regional Development

Rapporteur: Fernando Ruas

PR_INI

CONTENTS

Page

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION 3

EXPLANATORY STATEMENT 13

RESULT OF FINAL VOTE IN COMMITTEE RESPONSIBLE 17

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on cohesion policy and the review of the Europe 2020 strategy

(2014/2246(INI))

The European Parliament,

– having regard to the Treaty on the Functioning of the European Union (TFEU), and in particular Articles 4, 162 and 174 to 178 thereof,

– having regard to Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (hereinafter ‘the Common Provisions Regulation’)[1],

– having regard to Regulation (EU) No 1301/2013 of the European Parliament and of the Council of 17 December 2013 on the European Regional Development Fund and on specific provisions concerning the Investment for growth and jobs goal and repealing Regulation (EC) No 1080/2006[2],

– having regard to Regulation (EU) No 1304/2013 of the European Parliament and of the Council of 17 December 2013 on the European Social Fund and repealing Council Regulation (EC) No 1081/2006[3],

– having regard to Regulation (EU) No 1299/2013 of the European Parliament and of the Council of 17 December 2013 on specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal[4],

– having regard to Regulation (EU) No 1302/2013 of the European Parliament and of the Council of 17 December 2013 amending Regulation (EC) No 1082/2006 on a European grouping of territorial cooperation (EGTC) as regards the clarification, simplification and improvement of the establishment and functioning of such groupings[5],

– having regard to Regulation (EU) No 1300/2013 of the European Parliament and of the Council of 17 December 2013 on the Cohesion Fund and repealing Council Regulation (EC) No 1084/2006[6],

– having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020[7],

– having regard to the Commission’s sixth report on economic, social and territorial cohesion entitled ‘Investment for jobs and growth: Promoting development and good governance in EU regions and cities’, of 23 July 2014 (hereinafter ‘the sixth cohesion report’),

– having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002[8],

– having regard to the Commission’s eighth progress report on economic, social and territorial cohesion entitled ‘The urban and regional dimension of the crisis’, of 26 June 2013,

– having regard to its resolution of 14 January 2014 on smart specialisation: networking excellence for a sound Cohesion Policy[9],

– having regard to its resolution of 14 January 2014 on EU Member States preparedness to an effective and timely start of the new Cohesion Policy Programming period[10],

– having regard to its resolution of 26 February 2014 on the European Commission’s 7th and 8th progress reports on the EU Cohesion Policy and the Strategic Report 2013 on programme implementation 2007-2013[11],

– having regard to its resolution of 27 November 2014 on delays in the start-up of cohesion policy for 2014-2020[12],

– having regard to the Commission communication of 3 March 2010 entitled ‘Europe 2020 – A strategy for smart, sustainable and inclusive growth’ (COM(2010)2020),

– having regard to the Commission communication of 19 October 2011 entitled ‘A framework for the next generation of innovative financial instruments – the EU equity and debt platforms’ (COM(2011)0662),

– having regard to Regulation (EU) No 2015/760 of the European Parliament and of the Council of 29 April 2015 on European long-term investment funds[13],

– having regard to the Commission communication of 13 January 2015 entitled ‘Making the best use of the flexibility within the existing rules of the stability and growth pact’ (COM(2015)0012),

– having regard to the Council conclusions on the sixth report on economic, social and territorial cohesion: investment for jobs and growth, adopted by the General Affairs (Cohesion) Council on 19 November 2014,

– having regard to the opinion of the Committee of the Regions of 3 December 2014 on the sixth report on economic, social and territorial cohesion[14],

– having regard to the working document entitled ‘Blueprint for a revised Europe 2020 strategy: Contribution of the Steering Committee of the Committee of the Regions’ Europe 2020 Monitoring Platform’[15],

– having regard to the opinion of the European Economic and Social Committee of 21 January 2015 on the Commission’s sixth cohesion report[16],

– having regard to the Commission communication of 2 March 2015 entitled ‘Results of the public consultation on the Europe 2020 strategy for smart, sustainable and inclusive growth’ (COM(2015)0100),

– having regard to the Commission communication of 13 January 2015 entitled ‘Making the best use of the flexibility within the existing rules of the Stability and Growth Pact‘ (COM(2015)0012),

– having regard to Rule 52 of its Rules of Procedure,

– having regard to the report of the Committee on Regional Development (A8-0277/2015),

A. whereas cohesion policy is the EU’s main investment growth and development policy aligned with the goals of the Europe 2020 strategy for smart, sustainable and inclusive growth and aimed at reducing disparities between regions and promoting convergence, with a budget of EUR 351, 8 billion until the end of 2020; whereas the EU continues to face the effects of the economic and financial crisis – high unemployment, uneven and slow pace economic recovery; and whereas cohesion policy seeks to ensure that all energies and capacities are mobilised and focused on the pursuit of the Europe 2020 strategy’s objectives of sustainable growth and jobs;

B. whereas it is crucial that different EU initiatives for growth and jobs, as well as environment and climate protection, maintain a coherent approach; whereas the Europe 2020 strategy flagship initiatives play a key role in enhancing coordination at local and regional level as regards the implementation of cohesion policy; whereas there is no explicit mechanism built into the programming or the reporting provisions that would explicitly target flagship initiatives in terms of the contribution of the European Structural and Investment Funds (ESI Funds) to their delivery; whereas the Europe 2020 strategy review will need to address the implementation of the flagship initiatives and aim for a balance between financial, fiscal and economic measures on the one hand and social, educational, environmental and equality (especially gender equality) aspects on the other;

C. whereas there is a growing need for stronger co-ownership of the strategy by the different levels of governance and by the different actors involved, and for shared responsibility with the corresponding rights and obligations at all levels of implementation; whereas multi-level governance and partnership must be enhanced, as these principles have the potential to address the lack of administrative capacity;

D. whereas the goals of cohesion policy have unquestionably evolved over time to support investment in the main EU priorities, demonstrating their adaptability and effectiveness, while maintaining the reduction of disparities between the levels of development of the various regions as the central objective, strengthening regions’ potential and promoting sustainable development; whereas the European Fund for Strategic Investments brings new elements to the overall EU strategy aimed at creating innovative, sustainable and inclusive growth and skilled jobs;

E. whereas the review of the Europe 2020 strategy should take account of the serious, uneven effects the economic and financial crisis has had on the Member States and regions and be smart and balanced for reasons of coherence and effectiveness; whereas it might nevertheless consider other measures, such as infrastructure, internal market and administrative capacity measures; whereas different territorial characteristics should be taken into account, with special attention being given to the EU’s regions mentioned in Articles 174 and 349 of the TFEU;

F. whereas the mid-term review of the Europe 2020 strategy, though delayed in 2015, affords above all an opportunity to assess (and acknowledge) the contribution of cohesion policy to achieving the strategy’s targets and to improve existing interactions and links between various EU policies and with the EU budget, with a view to them acting as an effective driving force for the implementation of the strategy; whereas this stage is essential for shaping future cohesion policy, as an EU-wide investment policy, while prioritising the reduction of development disparities and re-accelerating the convergence process;

The Europe 2020 strategy and its interrelationship with cohesion policy

1. Recalls that the Europe 2020 strategy is an overarching, long-term ‘growth and jobs’ strategy of the European Union, built around five ambitious objectives: employment, innovation, climate change and energy sustainability, education, and fighting poverty and social exclusion; notes that the objectives are accompanied by seven flagship initiatives and notes that the challenges identified in 2010 have been unevenly addressed and that progress at EU level towards achieving some of them, such as fighting unemployment, is still moderate; emphasises that the EU should concentrate on sustainable growth and development, as well as on decent jobs in order to gain long-term benefits from its investments;

2. Highlights the fact that progress in gender equality could also contribute to economic growth, sustainable development and social cohesion;

3. Points out that an EU economic governance framework and its implementation mechanism, the ‘European Semester’, were established in 2010 to ensure coordination of Member States’ fiscal policies, structural reforms and better alignment of national budgetary policies on growth and jobs at EU and national level, in order to support the delivery of the strategy; draws attention to the fact that further coordination and synchronisation challenges still remain to be addressed;

4. Stresses that cohesion policy for 2007-2013, aligned with the predecessor Lisbon Strategy and having similar core objectives, was already in the implementation phase when the Europe 2020 strategy was launched, and that reprogramming in accordance with the new strategy objectives would therefore have been both difficult and counterproductive; points out, nevertheless, that, at a time of global economic crisis, cohesion policy has not only been the sole source of investment for many Member States, but has also, through ‘Lisbon earmarking’, substantially supported and contributed to countries’ policies for the implementation of the strategy, as shown by the sixth cohesion report and by several Commission communications and studies; recalls that the Lisbon Strategy lost the commitment of Member States, regions and cities over time, and that Europe 2020 governance is particularly consistent with cohesion policy principles and instruments, which can ensure a co-ownership commitment on the implementation of the strategy;

5. Calls on the Commission, in the context of the ex-post evaluations for the 2007-2013 programming period, to provide information on both the output and result orientation and the concrete contribution made to the Europe 2020 objectives by cohesion policy; stresses the importance of understanding the realities and limitations of the available evidence on cohesion policy’s contribution to the overarching objectives of the strategy and of considering the upheavals which the EU economies have suffered, especially in the case of those countries severely hit during the crisis; appreciates that those conclusions could be useful for the current delivery of the strategy;

6. Emphasises that cohesion policy is the main EU instrument, covering all regions, for investment in the real economy and acts as the expression of European solidarity by extending growth and prosperity and reducing economic, social and territorial disparities; points out that cohesion policy is fully aligned with the Europe 2020 objectives and provides the investment framework needed, without being simply a tool for its implementation; stresses, in this context, that through thematic concentration the ESIF under the new architecture are oriented towards 11 thematic objectives derived straight from the Europe 2020 objectives, and that preconditions linked directly to these thematic objectives have been established in order to ensure that investments are made in such a way as to maximise their effectiveness; underlines its full support for this new approach, which will contribute to increasing the effectiveness of spending;

7. Underlines the fact that cohesion policy is developing synergies with other EU policies such as the digital single market, the energy union, the single capital market and social policy and that, through all its instruments and objectives, including macro-regional strategies, the urban agenda, the territorial agenda, investment in SMEs, smart growth and smart specialisation strategies, it is substantially contributing to the strengthening of the single market and achieving Europe 2020 strategy targets; calls in this context on national and regional authorities across Europe to design smart specialisation strategies and exploit synergies between different EU, national and regional instruments, both public and private;

8. Points to the connection with a broader economic governance process through measures linking the effectiveness of the ESI Funds to sound economic governance; calls on the Member States to act with full responsibility in order to avoid their application to the greatest possible extent and to prevent negative impacts on the implementation of the ESIF and on the attainment of cohesion policy goals; stresses furthermore, that support should be provided to Member States experiencing temporary budgetary difficulties; welcomes the flexibility mechanisms within the existing rules of the Stability and Growth Pact (COM(2015)0012) aimed at strengthening the link between investment, structural reforms and the use of resources in order to promote long-term sustainable growth and facilitate progress towards the Europe 2020 objectives;

9. Stresses with concern the delays in implementing cohesion policy during the current programming period; points out that, although a large majority of operational programmes have now been agreed, the implementation itself is still at a very early stage; stresses, nevertheless, that assessments can be made as regards directing policy resources to priorities that contribute to sustainable growth and jobs; notes, in this context, that according to the first evaluation released by the Commission, the amounts allocated to R&I, support for SMEs, ICT, the low-carbon economy, employment, social inclusion, education and capacity-building have increased substantially as compared with the previous programming periods, while the level of support for transport and environmental infrastructure has decreased; draws attention to the fact that, at the time of the mid-term review of the Europe 2020 strategy, data on implementation of the ESI Funds 2014-2020 may still be lacking, and that, as a result, a concrete evaluation of the contribution of these funds to achieving the strategy’s targets may still not be possible at that stage; appreciates the fact that Member States have taken action, e.g. to ensure that 20 % of their resources are spent on climate action;

10. Acknowledges that establishing a performance framework and introducing ex ante conditionalities and linkages with country-specific recommendations (CSRs) in the cohesion policy programming 2014-2020 could provide a better investment environment for maximising the cohesion policy contribution to achieving Europe 2020 strategy headline targets;

Review momentum and related challenges

11. Recalls that the Commission launched the strategy review process in 2014 by publishing its communication entitled ‘Taking stock of the Europe 2020 Strategy for smart, sustainable and inclusive growth’, and considers it regrettable that insufficient reference was made to cohesion policy and the associated instruments in that document; appreciates the fact that the process continued with a public consultation carried out between May and October 2014 with a view to collecting evidence for the review process, and welcomes the fact that the strategy’s relevance and the meaningfulness of its objectives and priorities were confirmed;

12. Notes that the flagship initiatives are considered to be serving their purpose, but also highlights the fact that their visibility is considered to be rather low; regrets that the economic and financial crisis has aggravated the disparities within the European Union and that insufficient progress has been made towards several of the strategy’s headline targets, especially as regards employment, research and development, poverty and social exclusion; welcomes the conclusion drawn as to the need to enhance ownership and involvement on the ground, by consolidating vertical and horizontal partnerships with a view to improving the delivery of the strategy; stresses that the strategy should encourage the shift from process and outcome orientation to an actual result orientation approach in order to ensure the highest possible efficiency and effectiveness for the EU policies linked thereto;

13. Welcomes Eurostat’s regular publication of progress indicators as regards the implementation of the Europe 2020 strategy; calls, nevertheless, for greater and more accurate regional details in respect of the data provided at the NUTS II and NUTS III levels, which is going to be of increasing importance due to unforeseen economic and social problems occurring in various EU regions irrespective of their development level; points, moreover, to the three dimensions of cohesion policy – economic, social and territorial – and considers, in the light of this, that it should not be measured solely on the basis of economic indicators; calls,, in this context, on the Commission and the Member States to continue the discussion and engage in more efficient cooperation on the development of a more inclusive set of indicators to complement GDP, with a view to them being more relevant to evaluating the progress made towards achieving the priority objectives of the Europe 2020 strategy;

14. Notes that the publication of the Commission’s proposal on the review of the Europe 2020 strategy is due before the end of 2015 and regrets this delay, given that it was initially scheduled for early 2015; stresses that this will once again take place at a rather ‘inopportune moment’ in the cohesion policy cycle, when the effective implementation process is under way; stresses, moreover, that early reprogramming would be completely counterproductive for the long-term strategic planning of cohesion policy;

15. Welcomes the setting-up of a task force for better implementation of EU funds; also welcomes the establishment of the ‘Structural Reform Support Service‘, which officially started work on 1 July 2015 and which will provide technical assistance to Member States with a view to the more effective implementation of structural reforms and CSRs;

16. Acknowledges, at the same time, the need to consider the evolution of the economic outlook, the use of new instruments, the progress made towards the strategy objectives and the consequent necessity of making operational adjustments;

17. Calls therefore for the scope of the mid-term review of the Europe 2020 strategy to be smart and balanced and to be focused on better interlinking the strategy’s five objectives and its flagship initiatives and on identifying methods as to how they could be better carried forward and evaluated without creating additional layers of complexity and excessive administrative burden; stresses that it should take into account the strengths and weaknesses of the EU economy, the growing inequalities (such as in wealth), high unemployment and high public debts; emphasises that, in parallel with the focus on macro-economic criteria of fiscal and economic governance, progress towards all the Europe 2020 headline targets should be pursued; considers that attention should also be paid to increased societal and environmental sustainability, greater social inclusion and gender equality; underlines the importance of continued support from the Commission services for Member State authorities in improving administrative capacity;

18. Reiterates its calls to enhance the responsibility, ownership, transparency and participation dimensions of the strategy by involving LRAs and all relevant civil society stakeholders and interested parties from the target-setting and development of objectives to the implementation, monitoring and evaluation of the strategy; insists on the crucial importance of a strengthened governance structure based on multi-level governance, incentive structures, an effective mixed top-down / bottom-up approach, the partnership model of cohesion policy and public-private partnerships in general, with a view to the consultation and cooperation of all stakeholders, in order to ensure effective capacity to deliver on the long-term objectives; recalls that, in accordance with Member States’ institutional and legal frameworks, regional and local authorities are also responsible for public investment and should therefore be acknowledged as key actors in the implementation of the strategy;

19. Suggests, moreover, that the commitment by LRAs and stakeholders in the Europe 2020 strategy project should be renewed in the form of a pact between those partners, the Member States and the Commission, in order to ensure ownership and participation and that a code of conduct similar to the one on partnership, introduced by cohesion policy 2014-2020, should be adopted;

20. Emphasises the need for a truly territorial approach to the Europe 2020 strategy with a view to adjusting public interventions and investments to different territorial characteristics and specific needs; considers it of the utmost importance to bridge the overall approach of the Europe 2020 strategy and the territorial approach of the Territorial Agenda 2020 (TA 2020); takes the view, moreover, that tailor-made Europe 2020 voluntary regional targets should be possible and should be discussed at regional level without adding to the bureaucratic burden on the ground; stresses that such tailor-made voluntary regional targets should be consistent with the strategy’s overarching architecture and be comprised within the pre-defined targets; recalls also, in this connection, the importance of community-led local development strategies;

21. Acknowledges the significant role of cities and urban areas as drivers for growth and jobs, and demands that the review of the Europe 2020 strategy also take into account a wider holistic approach to the future development of cities as entities which play an active role in meeting Europe 2020 objectives; calls on the Commission, therefore, to give due consideration to the Riga Declaration on the Urban Agenda, in view of the fundamental role played by urban areas, whether small, medium-sized or large; stresses, in particular, the need for a strategy that takes account of the specific needs of small and medium-sized urban areas on the basis of an approach that builds synergies with the Digital Agenda and the Connecting Europe Facility;

22. Calls on the Commission to provide information about the role of territorial aspects as factors of economic growth, job creation and sustainable development, and demands that the review of the Europe 2020 strategy address territorial impacts and provide guidance on how to tackle them; reiterates the importance of consultation with LRAs in this regard, as they play a determinant role in the implementation of territorial development strategies; highlights also the role that macro-regional strategies and European territorial cooperation in general could play in the successful implementation of the Europe 2020 strategy’s goals, given that many development projects involve cross-border areas, including several regions and countries, and are able to develop place-based responses to the long-term challenges;

23. Notes the importance of the new EU investment instrument, the European Fund for Strategic Investments (EFSI), which will support the mobilisation of up to EUR 315 billion in investments, with the aim of closing the investment gap in the EU and maximising the impact of public spending; emphasises that the EFSI should be complementary and additional to the ESI Funds; regrets that it is not clearly linked to the Europe 2020 strategy, but considers that, through its objectives and the selection of viable, sustainable projects, it should contribute to the implementation of the strategy in specific areas;

24. Stresses, moreover, the imperative of ensuring full coherence and synergies between all EU instruments, by considering the smart specialisation strategies as one of the core investment instruments, in order to avoid overlapping or contradictions between them or between the different levels of policy implementation; demands, therefore, that the review of the Europe 2020 strategy confirm it as the EU’s long-term strategic framework for growth and jobs and address this challenge of coordinating policy instruments, including the EFSI, with a view to using all the available resources effectively and achieving the expected results as regards the overarching strategic goals;

25. Asks the Commission, with a view to promoting the overall harmonious development of the EU and in view of cohesion policy’s key role in delivering Europe 2020 strategy objectives, to take into consideration, when reviewing the strategy’s goals and objectives, the characteristics and constraints of specific territories, such as those of rural areas, areas affected by industrial transition, regions suffering from severe and permanent natural or demographic handicaps, island, cross-border and mountain regions and the EU’s outermost regions, in accordance with Articles 174 and 349 of the TFEU; points, in this context, to the latter regions’ potential in such areas as biotechnology, renewable energy and biodiversity;

26. Stresses the improved results arising from increasing the quantity, quality and impact of R&I investments, through the coordinated use of cohesion policy instruments and Horizon 2020 in the context of the mid-term review of the Europe 2020 strategy; asks the Commission, in this connection, to reinforce all possible interactions and synergies between these two important policy frameworks when reviewing the Europe 2020 goals and objectives and to set up a web-based tracking system in order to identify cases of combinations of funding from the ESI Funds with Horizon 2020, EFSI and the other Community-funded programmes; welcomes also the plan to introduce a ‘seal of excellence‘ for applicants that are evaluated as excellent, but cannot obtain financing from Horizon 2020, in order to help them access ESI Funds;

27. Calls on the Commission to establish a coherent ongoing evaluation process in order to regularly assess the progress of Europe 2020 strategy targets and suggest appropriate measures for their achievement, as well as recommendations for post-2020 cohesion policy; emphasises also Parliament’s role to supervise the implementation of the Europe 2020 strategy and cohesion policy in a coordinated manner, not only within Parliament, but also with all relevant institutions; calls, in this connection, for the timely involvement of Parliament in all relevant discussions targeting the design of the policies covered by the strategy, their implementation and their evaluation; points to the importance of also mobilising in these exchanges of views the Committee of the Regions, the European Economic and Social Committee, national and regional parliaments, LRAs, other stakeholders and interested parties;

Future cohesion policy – looking beyond the short term

28. Considers that the review of the Europe 2020 strategy, which will precede the launch of the proposal for the mid-term revision of the multiannual financial framework (MFF) for 2014-2020, will provide the basis for the future cohesion policy architecture post-2020, as well as for other MFF instruments; stresses, in this context, the importance of effectively addressing all the concerns raised above, while ensuring the continuity of the strategic approach; recalls, also, the added value of an EU-wide cohesion policy, which must continue to be one of the main EU investment instruments for growth, job creation and climate protection, while ensuring balanced, harmonious development across the EU, as a catalyst for change and a stimulator of prosperity, including in the less developed regions; underlines, in this regard, the need to ensure a sustainable level of financing for the ESI Funds after 2020;

29. Points out that both future cohesion policy and the future EU long-term strategy should be drafted before the end of the Commission’s current term, bearing in mind that there will be elections to the European Parliament in 2019, and that this imposes significant specific time constraints on the co-legislators as regards the negotiation calendar, and on the new Commission and the Member States as regards the preparation and adoption of the new partnership agreements and operational programmes before the start of the next MFF; notes, at the same time, that negotiations will also be entered into on the future MFF; calls on the Commission, therefore, to take into consideration all the specific constraints generated by interlinkages and timing coordination requirements and to develop a coherent approach as regards the EU’s future long-term sustainable growth and jobs strategy, the EU budget, cohesion policy in particular, and other instruments under the MFF;

30. Instructs its President to forward this resolution to the Council, the Commission, the Member States and the regions.

EXPLANATORY STATEMENT

Background

Cohesion policy accounts for over one-third of the EU budget and is the EU’s main investment instrument. It is closely aligned with the objectives of smart, sustainable and inclusive growth set out in the Europe 2020 strategy. The Commission is currently working on the mid-term review of the strategy and, at the end of 2015, is expected to submit proposals for developing it further.

The European Structural and Investment Funds (ESI Funds) for the programming period 2014-2020, are linked to Europe 2020 Strategy through the Common Provisions Regulation (CPR) and the 11 Thematic Objectives (TOs) created[17], which are aligned with the 5 headlines Europe 2020 Strategy targets[18].

In March 2014, the European Commission published a communication, showing how the EU and individual Member States are advancing towards the 2020 targets, which intended to lay the groundwork for a more informed discussion and a mid-term review.

Given the scale of the change that the EU has undergone as a result of the crisis, the Commission considered it necessary to launch an EU-wide public consultation to gather the views of all interested parties on how to develop the Europe 2020 strategy over the next five years. The consultation took place last spring and it was concluded in the autumn. Its results were published 3rd March 2015[19].

The Committee of Regions also published a working document about it: ‘Blueprint for a revised Europe 2020 strategy: Contribution of the Steering Committee of the Committee of the Regions’ (Europe 2020 Monitoring Platform)[20] and the Council had a first opinion on Europe 2020 Strategy Review [21] as well.

The European Economic and Social Committee, has also published a study about this subject[22] and is debating it with the social and economic partners in different fora.

This report is the first European Parliament report on the mid-term review of the Europe 2020 strategy, focusing on the cohesion policy dimension of this strategy. As cohesion policy 2014–2020 is fully aligned and contributes to the achievement of the objectives of the Strategy, it is very important to consider the progress already achieved, the scope of the review and the challenges which need to be addressed from the cohesion policy perspective.

It should be noted that post 2020 financial perspective and the long term Union strategy will come on the agenda more or less at the same time. The next Multiannual financial framework (MFF), the next cohesion policy and the post-2020 strategy will be discussed in parallel. This will represent a huge challenge for the new Parliament and the new Commission. The current mandate gives us a great opportunity for preparing a legacy for the next term in order to make this transition quicker and smoother.

Cohesion policy and Europe 2020 Strategy – strong connections

Cohesion Policy represents one of the key instruments for the delivery of the Europe 2020 Strategy. It continues to contribute positively and substantially to the achievement of Europe 2020 Strategy goals of smart, sustainable and inclusive growth:

• Cohesion policy has been contributing to the delivery of the Europe 2020 strategy goals in the former programming period 2007-2013, as shown by the findings of the Sixth Report on economic, social and territorial cohesion; it’s the main EU financial instrument contributing to the EU2020 goals;

• Europe 2020 Strategy has served as framework for the design and programming of the European Structural and Investment Funds (ESI Funds) for the 2014-2020 period. Through its whole architecture and new drivers such as thematic concentration, result-orientation, ex-ante conditionality, increased use of financial instruments, Cohesion Policy is fully aligned with Europe 2020 Strategy goals for smart, sustainable and inclusive growth;

It should be noted that after the 2008 crisis, due to the lack of national public funding, cohesion policy became the only financial resource for growth policy in some Member States or regions. This shows that due to the cohesion policy, some investments continued, despite a huge decrease in public funding. It confirms the long term importance of this policy and its resistance to different external economic factors. Your Rapporteur also reminds the importance of creating synergies between Cohesion Policy and Horizon 2020, emphasising the importance of increasing the quantity, quality and the impact of R&I Investments, through the coordinated use of Cohesion Policy instruments and Horizon 2020.

Interconnections with the European Fund for Strategic Investments (EFSI)

The Common Strategic Framework as provided for by the Common Provisions Regulation (CPR), aiming to achieve an integrated development through coordination of ESI Funds with other Union instruments and policies has to be fully implemented. Your Rapporteur reminds that the financial allocations to Member States agreed on under heading 1b in the MFF 2014-2020 cannot be modified in response to potential needs of the EFSI;

Interactions and connections between ESI Funds and EFSI should serve as a basis of reflection on the future of the cohesion policy. Differences between the two are huge and some beneficiaries have expressed their concerns about the overall future philosophy of the cohesion policy. In fact, EFSI doesn’t seem to be driven by the same criteria. This is one of the main reasons why ESI Funds stakeholders raise their concerns; your Rapporteur emphasises the fact that EFSI should be complementary and additional to the ESI Funds creating enhanced synergies and mutual added value.

In particular, while EFSI and other European instruments are rather thematic and targeted to different specific areas (research, energy etc.) Cohesion policy is the only horizontal investment policy in the EU. Your Rapporteur considers that it should remain a major EU wide horizontal investment policy.

Reinforced Multi level governance

The reviewed Europe 2020 Strategy should be reinforced in its governance, using the different layers of multi-level governance (MLG) under the partnership principle. Your Rapporteur underlines in this context, the importance of the existence of an effective mixed top-down/bottom-up approach in the Member States Multi-Level Governance framework. This includes defining, implementing, monitoring and evaluating EU 2020 Strategy application, through MLG agreements, by involving local and regional authorities (LRAs), other civil society stakeholders and interested parts. Your Rapporteur calls in this regard for an improved MLG in order to deliver Europe 2020 targets more coherently and effectively, not only at MS level, but also at European level and suggests the use of the cohesion policy MLG governance as a model for this review.

Also, stronger MLG will need more support for local and regional governments which have to deal with a completely new approach compared to the previous period. This is also valid for the preparation of the next forthcoming strategy for post 2020. In this respect stronger administrative capacity would be welcomed and should be encouraged, underlining that additional layers of complexity and administrative overburden should not be created.

Territorial approach

In connection with MLG, your Rapporteur expects a truly Territorial Approach to Europe 2020 Strategy and underlines, in this context, the necessity for the use of tailor-made Europe 2020 targets for each Region (at least, adjusted regional targets).

Taking into account that different regions experience different realities and specificities, thus having different development objectives within the Member States (MS) there is a need for a qualitative analysis and evaluation.

When the goals are all the same for different regions within the same MS (as it is the case in the current EU2020 Strategy), there might be asymmetric results on its implementation (in different Regions within the EU and even in different Regions within the Member States); having specific, own regional - tailor-made objectives could solve this limitation. Your Rapporteur strongly believes that this simple measure would also increase the ‘sense of ownership’ (at least, co-ownership) of the EU 2020 Strategy by the LRAs, the Member States and other stakeholders, consequently increasing its importance, visibility and effectiveness. By giving a larger ownership to the actors on the ground we could increase the effectiveness of the policy decided at European level. A high level of appropriation of the Europe 2020 by all stakeholders would help to achieve its goals. In this regard, your Rapporteur also reminds the importance of taking into consideration the special characteristics and constraints of the EU Outermost Regions as underlined by article 349 of TFEU.

Future challenges

Taking into account the serious time constraints and delays experienced at the beginning of the current programming period, your Rapporteur underlines the absolute necessity for a timely and comprehensive discussion on the future of EU cohesion policy post 2020 and its alignment with the revised/upcoming long term Strategy for the EU and the new MFF; your Rapporteur also recalls that there will be elections for the European Parliament in 2019 with a new Commission entering into functions which will deal with both the evaluation of Europe 2020 Strategy and the upcoming long term Union strategy and with a new programming period. Using our current experience we could avoid some potential delays in the future.

Without an in advance planned action the overlap of different upcoming decisions and legislative texts in 2018-2019 may cause new delays in the implementation of the new, post-2020, cohesion policy and long term EU strategy which will replace Europe 2020. Mid-term Europe 2020 strategy review is one of many different opportunities which can lead us to the successful preparation of the new financial and legislative periods. The experience gained during the last revision of the Cohesion Policy will certainly be very valuable while preparing and negotiating the next one.

RESULT OF FINAL VOTE IN COMMITTEE RESPONSIBLE

|Date adopted |17.9.2015 | | | |

|Result of final vote |+: |30 |

| |–: |3 |

| |0: |3 |

|Members present for the final vote |Pascal Arimont, José Blanco López, Franc Bogovič, Mercedes Bresso, Steeve Briois, Edward|

| |Czesak, Rosa D’Amato, Bill Etheridge, Michela Giuffrida, Krzysztof Hetman, Ivan |

| |Jakovčić, Constanze Krehl, Andrew Lewer, Louis-Joseph Manscour, Martina Michels, Andrey |

| |Novakov, Mirosław Piotrowski, Stanislav Polčák, Julia Reid, Liliana Rodrigues, Fernando |

| |Ruas, Maria Spyraki, Ruža Tomašić, Ramón Luis Valcárcel Siso, Ángela Vallina, Monika |

| |Vana, Matthijs van Miltenburg, Lambert van Nistelrooij, Derek Vaughan, Joachim Zeller |

|Substitutes present for the final vote |Jan Olbrycht, Demetris Papadakis, Maurice Ponga |

|Substitutes under Rule 200(2) present for the final |Brando Benifei, Andrejs Mamikins, Soraya Post |

|vote | |

-----------------------

[1] OJ L 347, 20.12.2013, p. 320.

[2] OJ L 347, 20.12.2013, p. 289.

[3] OJ L 347, 20.12.2013, p. 470.

[4] OJ L 347, 20.12.2013, p. 259.

[5] OJ L 347, 20.12.2013, p. 303.

[6] OJ L 347, 20.12.2013, p. 281.

[7] OJ L 347, 20.12.2013, p. 884.

[8] OJ L 298, 26.10.2012, p. 1.

[9] Texts adopted, P7_TA(2014)0002.

[10] Texts adopted, P7_TA(2014)0015.

[11] Texts adopted, P7_TA(2014)0132.

[12] Texts adopted, P8_TA(2014)0068.

[13] OJ L 123, 19.5.2015, p. 98.

[14] OJ C 19, 21.1.2015, p. 9.

[15]

[16] Opinion of 21 January 2015 (EESC 4756/2014 – ECO/370) (not yet published in the Official Journal).

[17] 1- strengthening research, technological development and innovation; 2- enhancing access to, and use and quality of, ICT; 3- enhancing the competitiveness of SMEs, of the agricultural sector (for the EAFRD) and of the fishery and aquaculture sector (for the EMFF); 4- supporting the shift towards a low-carbon economy in all sectors; 5- promoting climate change adaptation, risk prevention and management; 6- preserving and protecting the environment and promoting resource efficiency; 7- promoting sustainable transport and removing bottlenecks in key network infrastructures; 8- promoting sustainable and quality employment and supporting labour mobility; 9- promoting social inclusion, combating poverty and any discrimination; 10- investing in education, training and vocational training for skills and lifelong learning; 11- enhancing institutional capacity of public authorities and stakeholders and efficient public administration.

[18] To ensure that the Member States’ reforms aim in the same direction, five EU-wide core quantifiable goals were adopted to be achieved by 2020: 1- Employment: Among 20 to 64 year old women and men the employment rate should increase to at least 75 %. This is to be achieved primarily through better integration of young people, older workers and low-skilled immigrants in the labour market as well as through a greater involvement of women; 2- Research & Development and Innovation: 3 % of GDP should be invested in R&D. The target has succeeded in focusing attention on the need for both the public and private sectors to invest in R&D but it focuses on input rather than impact; 3- Climate Change and Energy: The greenhouse gas emissions are to be reduced by 20 % compared with the level in 1990, the share of renewables in final energy consumption should be increased to 20 % and there is the commitment to increase the energy efficiency towards 20 %; 4- Education: The school dropout rate is to be reduced to below 10 % and the percentage of the 30 to 34 year olds who have completed a tertiary education is to be increased to at least 40 %; 5- Poverty and Social Exclusion: !#$345>JTU[gpwxƒõêßɾ·¬¡¬šŒˆŒ The number of Europeans living below the national poverty lines should be reduced by 25 %, lifting over 20 million people out of poverty ().

[19]

[20] .

[21] Europe 2020 strategy mid-term review – Presidency synthesis report ( ).

[22] .

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