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Data: 11/11/2013
RegioFlash: An interview with Commissioner Johannes Hahn on the future of Regional Policy
1. How do you see the future of Regional Policy and its role in boosting European growth and jobs?
In the current climate, Regional Policy is playing a crucial role in helping the regions to exit from the crisis. Over recent years, the policy has started to change from an infrastructure-oriented policy towards one of investment and job creation. Our reforms complete that evolution so investments are focused above all on stimulating the economy. Not only does the policy help poorer regions to catch up, but it gives all regions the tools to invest in their competitiveness. Regional investments have stimulated economic activity, in particular in the areas of research and innovation, helped enterprises to prosper and have created lasting jobs. In the future by linking our objectives much more closely to the EU's long-term goals in the Europe 2020 Growth Strategy, we will have a policy that is much more able to deliver what people living in regions and cities want: jobs and prosperity but also clear air, water and affordable energy.
At the last Council meeting in June 2013, Member States, the European Parliament and the Council reached a provisional agreement on the EU's budget for the next seven years. I am very pleased that Cohesion policy remains the second biggest expenditure, representing a third of the EU budget over 7 years. This decision is recognition at the highest level of its importance in contributing to Europe's economic recovery and renewed dynamism.
2. What do you expect from the reform of regional policy for the next programming period 2014-2020?
In the future, we must ensure that we make the best use of those funds and get the best possible return. Every euro of taxpayers' money should be spent to the maximum effect. The current climate of tight budgetary constraints has also made it clear that Regional Policy must become even more relevant and focused to adapt to changing circumstances and needs of the economies.
As Commissioner, I have put forward proposals for reform for 2014-2020 that will transform the policy into an investment tool that both supports and stimulates European regions and cities and helps them to be competitive on a global scale. The bulk of these proposals have now been agreed and negotiations with the Parliament and the Council are in their final phase.
The key changes are a new focus of investments on fewer priorities where Europe has decided most growth will come; the introduction of new conditions before funding can be approved and the demand for clear strategies from member states and regions about how they intend to spend the money and what kinds of results they expect. A common set of rules for all EU funds will also help better coordination between the European Structural and Investment Funds (ERDF, Cohesion Fund, European Social Fund and the Rural Development and Fisheries Fund). This framework will link more closely to other EU instruments, like Horizon 2020 or the Connecting Europe Facility.
3. Which are these priority areas where you want to focus funds and what are the major changes for 2014-2020 to support regions in better spending regional funds and maximising results?
When it comes to the European Regional Development Fund, resources must be concentrated on a small number of key growth priority sectors. Between 50 and 80 % of the budget will be targeted at measures to support research and innovation, the digital agenda, the competitiveness of SMEs and the shift towards a low-carbon economy. For low-carbon economy, there is a further obligation to allocate at least between 12% and 20% to energy efficiency and renewable energy. I think that could mean that at the very least 23 billion euros would be available to support the low carbon economy. That can make a real difference in the fight against climate change and in breaking Europe's energy dependency.
Support for Europe's small and medium sized business is really essential. In fact with the use of financial instruments for example loans and guarantees, I would like to see support for SMEs rise from the current 70 billion to double that - 140 billion for 2014-2020. They are the lifeblood of Europe's economy and the source of new jobs.
In the next programming period, regions and Member States will have to explain what they intend to achieve with the resources available. This implies that they have to establish clear, transparent and tangible targets. Those should be monitored, measured and integrated in the programmes. Depending on the progress towards these targets, additional funds (performance reserve) will be made available to programmes towards the end of the period.
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