Imposed reforms and growth strategies risk falling short, local leaders warn
Europe's cities and regions are determined to remove obstacles to investments as well as introducing structural reforms and the implementation of responsible fiscal policies. This was the main message of local and regional leaders at the Commission for Economic Policy (ECON) of the European Committee of the Regions today in the presence of Commissioner Pierre Moscovici i and the Chair of the ECON Committee in the European Parliament, Roberto Gualtieri i.
The European economy is estimated to have missed out on around €300bn in public and private investment since 2008 due to the financial crisis. The 2016 Annual Growth Survey's (AGS) main priorities intend to bridge this post-crisis investment gap and strengthen structural reforms and fiscal responsibility.
"Year after year, we do not invest enough and this persistent investment gap truly threatens our future," emphasised Committee of the Regions' President Markku Markkula. "The cities and regions of Europe are ready to identify obstacles to investments and to understand where and why regulations, the access to funding or other measures do not have the wished effects to boost investments."
Pierre Moscovici , Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "To activate investment, effective use of EU funding is of tremendous importance. Most of the EU-funded projects as well as national investment initiatives are executed on a regional and local level. The role of local authorities in reaching the highest efficiency for public investment, and in addressing investment obstacles, is absolutely critical."
The Members reiterate the necessity to adopt a Code of Conduct to ensure the structured involvement of local and regional authorities in the European Semester, the annual cycle of economic policy guidance and surveillance. The Committee of the Regions will deliver a proposal on this issue in 2016, also inspired by a study by the European Committee of the Regions presented during the meeting.
Roberto Gualtieri , Chair of the ECON Committee of the European Parliament, offered his support in strengthening the territorial dimension of the European Semester. “The proposed code of conduct can help promote the partnership principle whilst a new cooperation agreement between CoR and the European Parliament should allow us to better understand how to implement crucial policies such as the Juncker plan," he said. "In this respect, regional investment platforms should be encouraged and supported so that innovative projects can to take shape in our regions."
How cities and regions can use their knowledge to best assist in the recovery and convergence of the EU's economy is the topic of a draft resolution by the members of the ECON Commission. "The coordination and delivery of EU macro-economic policies cannot be effective without the involvement of local and regional authorities. They must be allowed and encouraged to contribute to the shaping of national reform programmes as well as to the implementation of growth measures such as the Investment Plan for Europe" said ECON Chair Christian Buchman (AT/EPP).
The city and regional leaders also want the European Commission to allow local and regional bodies access to the technical assistance provided under the Structural Reforms Support Programme , to improve their administrative capacity and to promote an EU debate on how fiscal decentralisation could improve the quality of public expenditure.
Note for the editors:
The 2016 Annual Growth Survey (AGS ) was published on 26 November 2015. It starts the European Commission fourth cycle of economic policy coordination known as the European Semester. It sets out general economic and social priorities for the following year, and gives member states policy guidance with the aim to foster growth and prevent excessive macro-economic imbalances. To strengthen the recovery and foster convergence, the Commission recommends for 2016 to build on the three main pillars identified last year for the EU's economic and social policy: re-launching investment, pursuing structural reforms and responsible fiscal policies.
Structural Reforms Support Programme by the European Commission intends to progressively roll out its support for technical assistance to promote favourable conditions for economic growth, social and environmental protection and improvement. The Annual Growth Survey is thus accompanied by a proposal for funding for technical assistance to the Member States that can be deployed upon request.
Europe 2020 strategy is the EU's growth strategy for the coming decade. The strategy sets out five objectives on employment, innovation, education, social inclusion and climate/energy to be reached by 2020. Each Member State has adopted its own national targets in each of these areas. Concrete actions at EU and national levels underpin the strategy.
The European Committee of the Regions
The European Committee of the Regions is the EU's assembly of regional and local representatives from all 28 Member States. Created in 1994 following the signing of the Maastricht Treaty, its mission is to involve regional and local authorities in the EU's decision-making process and to inform them about EU policies. The European Parliament, the Council and the European Commission consult the Committee in policy areas affecting regions and cities. To sit on the European Committee of the Regions, all of its 350 members and 350 alternates must either hold an electoral mandate or be politically accountable to an elected assembly in their home regions and cities. Click here for more details on your national delegation.
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