EU cohesion policy has been an important force of change over the past decade, creating more than one million jobs, investing in training to improve the skills of over 10 million people and co-financing the construction of over 2,000km of motorway and 4,000km of railway. In Malta alone, for the period 2007-2013, the EU is investing €855 million, in regional and social spending on a wide range of programmes – a contribution which will mobilise over €1 billion in total public investment. Landmark projects such as the Life Sciences Centre (€15.3 million EU investment), which will develop innovative life cycle and supply chain processes for companies specialising in this field, or the construction of the waste water treatment plant southeast of Valletta (with €59.5 million investment) are just two examples of the tangible benefits of EU cohesion policy on the ground.
Our proposal for EU funds will prepare all European regions for the rapidly evolving global economy
As we prepare for the next generation of EU-funded programmes starting in 2014, is at a crucial point in re-defining the aims and objectives of cohesion policy – its investments in its regions and its people. Our goals for the future – as set out in the Commission’s proposal a few days ago – are to increase the impact of our investments by proposing a new approach. Our quest to treat as a whole and reduce inequalities between urban and rural areas, between populated and sparse regions, and in geographically remote parts will continue. That’s why our investment in competitiveness and jobs – in people, in their training, their opportunities and in infrastructure to improve their quality of life – is at the heart of the EU’s Europe2020 Strategy. This strategy is our exit path from the current crisis.
Our proposed approach to future cohesion investments will mean setting targets for each region that reflect the challenges of the day: boosting employment, improving educational attainment and modernising social services as well as investing in cross-border infrastructure, energy efficiency, technology and innovation. These are ambitious but realistic goals in a difficult economic climate. This is why the European Commission stressed in its June proposal for the next EU budget that secure financing is so essential, proposing a total of €376 billion cohesion funding for the next seven years. If we are to deliver on sustainable growth and jobs we need a budget to match these goals. With secure funding, we are confident that we will be able to do our job and to do it well. And as governments across Europe are forced cut public spending, it is clear that using the structural funds smartly is more important than ever before. That’s why we need to work closely with our regional partners on the ground in Malta, and in all Member States and regions, to make EU cohesion policy even more effective, both in delivering concrete results and in ensuring value for taxpayers’ money.
With 23 million people looking for work in the EU and over 113 million estimated to be living at risk of poverty or exclusion, we must invest in training, education, entrepreneurship and jobseeker support. To this end, we have proposed a minimum 25 per cent of overall funding to come from the European Social Fund. In our view, part of this should be devoted to creating opportunities for people from disadvantaged backgrounds and reducing poverty. We have to spend effectively and wisely, implementing a policy that serves all regions and citizens. Moreover, we have to add visible value to what national and regional authorities are already doing, concentrating on fewer priority areas and with a stronger focus on results.
Above all, our goal is to make cohesion policy simpler and more effective by cutting red tape. We want to bring simplification to a new level, for example by harmonising rules and by using less complex cost options whenever possible.
To make sure our future programmes stay on track and deliver genuine, visible results, we are also proposing to sign partnership contracts with each , laying down a clear investment strategy and concentrating funding on a limited number of areas. We also want a clear agreement on conditions to be fulfilled before any EU money is made available, including reaching specific reforms and milestones.
Our proposal for EU funds after 2013 will prepare all European regions for the rapidly evolving global economy in which we live and tailor it to the needs of each region, with a strong social dimension. We simply want to make the best possible investments all over – investments that will deliver prosperity, security and a bright future to all regions. Since nobody has the guarantee of everlasting wealth. This is why smart investment all over the EU is needed more than ever.
Mr Hahn is commissioner for Regional Policy and Mr Andor is Commissioner for Employment, Social Affairs and Inclusion.