The European Commission has outlined its plans to modernise cohesion policy investments ahead of proposed cuts in the next multiannual financial framework.
Alongside its strategy to modernise cohesion policy investments, the commission has published member states’ national allocations of funding, in what it calls ‘an unprecedented move of transparency’.
Despite a proposed 5% cut to its funding in the next long-term EU budget, which will last from 2021-2027, the future cohesion policy will still command a budget of €373bn with which to bridge gaps in capabilities between member states. Efforts to modernise cohesion policy investments will maximise the cost-effectiveness of EU financing, while ensuring it continues to operate effectively.
How will the new cohesion policy function?
The main function of a modernised cohesion policy framework will be to focus on key investment priorities in areas in which the EU can deliver best, by supporting innovation, SMEs, digital technologies and industry. These investments will be made in all regions, but particularly those in the south and east of Europe that are lagging behind in terms of growth or income.
In addition, the commission aims to improve access to funding by making the application process and the rules significantly simpler. In pursuit of this latter aim, the same set of rules will now cover seven EU funds, to facilitate easy application and synergies between funds. Flexibility in the framework will help funding to adapt to changing needs and unforeseen events, while still providing necessary stability.
How does the proposal further the commission’s goals?
European Commissioner for Regional Policy, Corina Creţu, suggested that the new flexibility in cohesion policy would compensate for the reduction in funding, and allow urgent priorities to be more effectively addressed.
She explained: “Today we propose a cohesion policy for all regions, which leaves no one behind. We have made it more flexible, to adapt to new priorities and better protect our citizens. We also made the rules simpler and this will benefit all, from small businesses and entrepreneurs to schools and hospitals that will get easier access to the funds.”
