magazine-CoR-n90-final-version

28
News from the EU’s assembly of regional and local representatives News from the EU’s assembly of regional and local representa EUROPEAN UNION Committee of the Regions Nº 90 – JANUARY-FEBRUARY 2015 ISSN 1681-3235 Michel Lebrun Laimdota Straujuma Jean-Claude Juncker Special Feature Investment Plan for Europe Boosting Jobs and Growth

Transcript of magazine-CoR-n90-final-version

Page 1: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representativesNews from the EU’s assembly of regional and local representa

EUROPEAN UNION

Committee of the Regions

Nº 9

0 –

JAN

UARY

-FEB

RUAR

Y 201

5

ISSN 1681-3235

Michel Lebrun Laimdota StraujumaJean-Claude Juncker

Special Feature

Investment Plan for EuropeBoosting Jobs and Growth

Page 2: magazine-CoR-n90-final-version

1

Editorial

Michel Lebrun

2

Our guest

Jean-Claude Juncker

4

Special feature

Investment Plan for Europe

13

Latvian Presidency of the Council of the EU

15

European Year for Development

2015: The European Year for Development

17

Interview with Markus Töns

18

Ukraine has started out on its long

road to Europe

23

Brief News and Events

TABLE OF CONTENTS

Reactions/comments: [email protected]

www.cor.europa.eu

Regions & Cities of Europe — N° 90

Director of Publication: Laurent Thieule

Editor-in-Chief: Branislav Stanicek

Committee of the Regions

Communication, Press and Events

Directorate

Rue Belliard/Belliardstraat 99–101

1040 Bruxelles/Brussel

BELGIQUE/BELGIË

Tel. +32 222822211

www.cor.europa.eu

Regions & Cities of Europe is a magazine

of the Committee of the Regions,

published by the Communication, Press

and Events Directorate.

The content of this magazine does

not necessarily reflect the opinions

of the European Union institutions.

Neither the institutions/bodies of

the European Union, nor any person

acting on their behalf, can be held

responsible for any misuse of the

information provided here.

© European Union, 2015

Printed in Belgium

@EU_CoR www.facebook.com/committee.of.the.regions

Page 3: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 1

We need to boost investmentwithout creating additional debt

2014 proved to be a crucial yet difficult year

for the European Union and its citizens.

The crisis and persistently high levels of

unemployment, compounded by fears related im-

migration, terrorism and instability to the East,

has caused an understandable sense of political

mistrust among many citizens. But as the new Eu-

ropean Commission and Parliament entered into

force in November last year, 2014 should be con-

sidered a turning point for Europe offering some

level of hope and expectation. The appointment of

Jean-Claude Juncker as President of the European

Commission marked a new step in the EU con-

struction having been the first to ever take the role

following the European elections. The reaction to

the heinous terrorist attacks on Charlie Hebdo in

Paris saw a show of force and unity in defence of

European values in Paris as I joined the march of

solidarity alongside many citizens and EU leaders.

The Commission has published its blueprint for

its term in office. The key measures, such as the

EUR 315 billion Investment Plan are discussed

in this issue. Firstly, we need to boost investment

without creating additional public debt. This is the

new Commission’s commitment for re-launching

Europe, and this will also be our commitment,

the challenge facing the cities and regions in

2015. The Structural Funds for 2014-2020 are a

key instrument for moving forward and investing

in viable projects. In some Member States, in

particular in Southern Europe and in Central

and Eastern Europe, European funds represent

between 80-90% of all public investment. Local

and regional authorities are directly involved in

managing these funds and today one of our main

concerns is the question of co-financing. We can

only welcome the agreement that investment in

our future should not be counted as part of the

debt, and more f lexibility under the Stability and

Growth Pact, while keeping in mind importance

of fiscal responsibility.

Of late, there has been a huge increase in projects

suitable to be co-financed by the Investment

Plan. By the end of 2014 Member States had

presented around 2000 projects worth over EUR

1300 billion. Awash with new Investment Plan

finances, one can ask: which projects offer the best

value for the public? The winners will be projects

with clear European added value and those which

represent long-term viable investments with

a degree of economic sustainability. A danger

that we should avoid is that the new Fund will

support a patchwork of projects with too many

political, regulatory or economic risks. As stated

by President Juncker himself, “The Fund will

finance riskier investments that would not have

happened otherwise”. In other words, with EUR

21 billion guaranteed and financed from the EU

budget and the European Investment Bank, public

money will be financing high-risk projects that, on

purely economic criteria, would probably never be

realised, by means of a scheme with a high leverage

ratio of 1:15. In this way, the new Fund shouldn’t

repeat the original sin that lay behind the financial

crisis: too much leverage and over-investment

in economically unsustainable projects, thus

delaying the process of restoring public finances

and deleveraging which started in 2007-2008.

With this in mind, we shall continue to promote

fiscal responsibility. What does this mean for

our cities and regions? The crisis started not only

with financial leveraging within private sector,

in particular banking and construction, but also

with the leveraging of budgets at national, local

and regional levels. But debt remains debt, and

somebody has to pay the bill. The lesson of fiscal

responsibility is one of the key lessons learnt

from the current crisis. How we can reconcile

this requirement with the need for investment

and economic growth? The critical factor is the

efficiency of spending – to ensure that public

“spending” is a real “investment”, to get more for

each euro spent. The responsible way is to keep

budgets and fiscal policies in balance so as not to

penalise the needs of future generations. This is why

we need to respect the philosophy of the Stability

and Growth Pact. With slow demographic growth

and GDP advancing at an annual rate of around

1%-plus, additional debt could create too heavy a

burden for our children and jeopardise our future.

Furthermore, it will increase internal political and

social instability, as we can observe today, mainly

in Greece, but also in Italy and Spain, the UK

and some countries of Central Europe, where new

populist and eurosceptic political movements are

emerging.

There is clearly a need to accelerate structural

reforms. As stressed recently by the European

Parliament’s paper on “Mapping the Cost of

Non-Europe, 2014-19”, Europe is locked into real

inefficiencies which penalise both companies and

citizens. We have to unlock our full potential, the

economic growth that will be a basis for our social

cohesion. For example, we do not yet have a real

internal digital market, and people are penalised by

additional telephone costs when travelling abroad.

The answer is to work harder in the direction

announced by President Juncker for 2015.

Beyond the challenging environment, I believe we

will succeed and maintain the pace of progress in

European integration. This is the way to cut the

ground away from social unrest and stagnation and

fight euro scepticism and populism. I hope that, in

collaboration with all members of the Committee,

our new ideas and fresh energy will help us to

emerge from the crisis stronger and more resilient.

To this end, we will continue to improve our

communication with citizens; our last Citizens’

Dialogue “Europe in my City”, held on 23 January

in Santander, Spain, was a great success. From

our debate it was clear that people expect from

the Union more concrete actions and measures

to improve living standards and wellbeing, in

particular social and family policies that improve

education, healthcare and decrease inequalities. In

2015, with the new term of office of the European

Committee of the Regions for the next five years,

we will work harder, together with other European

institutions, Member States, regions and cities, to

improve the living standards of our populations.

Michel Lebrun (BE/EPP), President of the Committee of the Regions

EDITORIAL

“The lesson of fiscal responsibility

is one of the key lessons learnt

from the current crisis. How we can

reconcile this requirement with the

need for investment and economic

growth? The critical factor is the

efficiency of spending – to ensure

that public ‘spending’ is a real

‘investment’, to get more for each

euro spent.”

Page 4: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives2

You have presented a new investment

plan and 28 Member States have

proposed 2000 projects worth over EUR

1300 billion. However, we are still in a

time where sovereign states, local and

regional authorities, the private sector

and households, are struggling to balance

their budgets. How would you reconcile this

need for fiscal responsibility and the need

for additional investments?

There is no contradiction between these. Remem-

ber the virtuous triangle I presented when tabling

the EUR 315 billion Investment Plan: we need to

boost investment, promote fiscal responsibility

and accelerate structural reforms. We need these

three pillars. Reforms, both at European and na-

tional level, and fiscal responsibility are needed to

unlock investment, growth and job creation.

We needed to act fast because our public resources

are stretched. We also needed a solution that at-

tracts investment without creating public debt –

this is what I had committed to. What we need

is not more public money, but the smart use of it,

geared to unlocking investment. The Commission

has put up EUR 8 billion from the EU budget.

This backs up a EUR 16 billion guarantee given

to the Fund from the EU budget which will be

topped up by another EUR 5 billion from the EIB.

With this EUR 21 billion reserve, the EIB can give

out fresh financing loans of EUR 63 billion. And

the EIB will not be acting alone: with its Triple A

rating, it will be financing the riskier parts of pro-

jects worth 315 billion, meaning private investors

will be pitching in the remaining EUR 252 billion.

Thanks to the European Council on 18 December

which endorsed all elements and the timing of the

Investment Offensive we can now get started on

setting up the Fund swiftly. Importantly, it will

finance riskier investments, that would not have

happened otherwise, and this is why it will par-

ticularly benefit countries that have been most hit

by the crisis. Public expenditure should be used for

what it is best at doing: funding our schools and

welfare systems, not servicing our debt.

The list of potential funding projects published by

the Task force on Investments contains over 2000

examples. Obviously, not all of these are new, stra-

tegic and economically viable. Nevertheless, there

are many interesting examples – like infrastruc-

ture for energy connections in Finland, Poland and

the Baltic States, reform of school infrastructure

in Italy or modernisation of regional hospitals in

Belgium, to mention just a few examples.

In terms of financing, Commissioner Corina

Creţu said that cohesion policy will make a

significant contribution to the plan. What

role will European cohesion policy and

the already agreed Multiannual Financial

Framework (MFF) play? Some suggest

that the MFF will need to be reviewed to

implement the plan. Do you share this view?

The investment plan comes on top of existing fi-

nancing programmes at EU and national level. It

is about increasing investments in our common

future. The necessary re-allocated appropriations

will come not from cohesion policy but from the

Connecting Europe Facility (EUR 3.3bn) and Ho-

rizon 2020 (EUR 2.7bn) as well as from the EU

budget reserve (EUR 2bn). Of course, this does

not mean that the money is lost. On the contrary,

the European Fund for Strategic Investment of-

fers significantly increased possibilities to invest in

Europe’s infrastructure, as well as for research and

innovation purposes. The impact of investments

through the European Fund for Strategic Invest-

ment will be more significant than under the cur-

rent programmes.

OUR GUEST

Jean-Claude Juncker, former Prime Minister of Luxembourg, became the new President of the European Commission on 1 November 2014. We

met him shortly after he presented his new EUR 315 billion Investment Plan that aims to boost the European economy over the next three years.

Here he gives his views on the future cooperation with European regions and cities and offers insight about the Commission’s Work Programme

for 2015. He argues that “reforms, both at European and national level, and fiscal responsibility are needed to unlock investment, growth and job

creation”.

Interview by Branislav Stanicek

“The new Investment Plan will

finance riskier investments,

that would not have happened

otherwise, and this is why it will

particularly benefit countries that

have been most hit by the crisis.’”

Interview with Jean-Claude Juncker, President of the European Commission

Europe must boost investment, promote fiscal responsibility and accelerate structural reforms

Page 5: magazine-CoR-n90-final-version

REGIONS AND CITIES OF EUROPE 3

To be clear: in cohesion policy, national alloca-

tions and the EUR 10 billion earmarked from the

Cohesion Fund for the Connecting Europe Facil-

ity will not be touched. But as a complement to

the new Fund and on top of the EUR 315 billion

being mobilised, Member States are encouraged

to increase the use of innovative financial instru-

ments in the form of loans, equity and guarantees,

instead of traditional grants in the context of the

European Structural and Investment Funds. The

Commission would like to see the overall amount

doubled compared to the 2007-2013 period. Just

by doubling the current use of innovative financial

instruments, you can significantly increase the

impact on the ground in terms of mobilisation of

additional investments available at national and

regional levels.

Overall, the reformed cohesion policy will be an

important complement to the investment offen-

sive. The increased focus of cohesion policy in the

period 2014-2020 on key areas will maximise in-

vestment in SME support, research, innovation,

digital and low-carbon economy. And as the in-

creased use of financial instruments in the form of

loans, equity and guarantees, instead of traditional

grants, is already allowed for in the reformed co-

hesion policy 2014-2020, we do not even need to

reopen the Multiannual Financial Framework.

Reopening the Multiannual Financial Framework

would lead to significant delays in implementing

the Investment Plan. Europe has no time to lose.

Some people have voiced the need for more

flexibility in the application of the Stability

and Growth Plan, particularly as regards co-

financing of the Structural Funds and also

in relation to your plan. What do you think

about these proposals?

The Commission has already stated its inten-

tion to take a favourable position towards capital

contributions to the European Fund for Strategic

Investments when it comes to assessing public fi-

nances under the Stability and Growth Pact. The

European Council of 18 December took note of

this approach. We will come forward with detailed

guidance on this in January.

What progress has been made as regards

rolling out the new investment plan? You

have announced that you intend to start

projects in 2015...

The plan has been designed with urgency in mind.

To set up the Fund we need one legal act, to be

adopted in co-decision. The Commission will put

forward a proposal on 13 January 2015 and we

count on the support of the Parliament and the

Council for a swift adoption so that the Fund is

fully operational by the middle of next year. In or-

der to start delivering on the ground as rapidly as

possible, the European Investment Bank has con-

firmed that it will start certain activities using its

own funds in early 2015.

How would you like to involve local and

regional authorities in the implementation

of your plan?

Local and regional authorities will be instrumental

in the implementation and the success of the plan.

In fact, the Commission has proposed a number

of implementation options for local and regional

authorities in order to encourage and optimise

their use of financial instruments under cohesion

policy. We are ready to support regional and local

authorities and to guide their choice.

In many cases the lack of private investment

– especially in less developed areas – is due

to factors that are not strictly financial,

such as public procurements rules, limited

transparency, corruption or weakness in

government. How do you hope to ensure

that these areas benefit from the plan?

This is very true. There is much liquidity in the fi-

nancial system that is currently underutilised. For

this reason the Investment Plan is not only about

mobilising funding but also about creating the

right investment conditions through the right reg-

ulatory conditions. While there will be no sectoral

or geographic pre-allocations or ‘quotas’, technical

assistance will be stepped up so that project pro-

moters and relevant authorities in all countries are

able to present viable projects. These efforts will be

accompanied by practical proposals to improve the

investment environment by removing regulatory

barriers in our single market.

In addition my colleague Corina Creţu, the EU’s

regional policy commissioner has set out to look

at the underlying dynamics of very poor regions

and regions with consistently low growth rates in

order to find ways to reverse this trend. It has not

gone unnoticed that social and economic develop-

ments in a number of less developed countries and

regions appear to be going in the wrong direction.

One of Ms Creţu’s first acts as Commissioner for

regional policy was to instruct DG Regional and

Urban Policy to set up an internal task force to

look at the issue of low absorption of European

Regional Development Fund and Cohesion Fund

monies in certain Member States for the 2007-

2013 programmes.

Finally, in addition to the investment plan,

what are your key policy initiatives for

2015 to tackle challenges related to the

internal market, especially the integration

of Europe’s energy and digital markets?

Only a few weeks ago, the Commission adopted its

Work Programme for 2015 which sets out the 18

initiatives that we will tackle as a matter of priority

in the New Year. We will table an ambitious Digi-

tal Single Market package to create the conditions

for a vibrant digital economy and society. We will

also take steps towards a European Energy Union

to ensure energy security, integrate national ener-

gy markets, reduce energy demand in Europe and

promote green technology.

We also plan to deepen our economic integration

which is very important for the stability of the

eurozone. This will be matched by plans to cre-

ate a Capital Markets Union, diversify sources of

financing for the economy, reduce fragmentation

in capital markets and make Europe more attrac-

tive for investors from third countries. A fairer ap-

proach to taxation is something citizens rightly feel

strongly about. At the December European Coun-

cil, European leaders agreed that there is an urgent

need to step up the fight against tax avoidance and

aggressive tax planning, both at the global and EU

levels. The European Commission will therefore

present a proposal on the automatic exchange of

information on tax rulings in the EU in the first

half of 2015. And we will kickstart work on the

Common Consolidated Cooperate Tax Base.

“Local and regional authorities

will be instrumental in the

implementation and the success

of the plan.”

Page 6: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives4

SPECIAL FEATURE

Investment Plan for EuropeBoosting Jobs and Growth

Page 7: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 5

The Investment Plan will unlock public and private investments in the real economy of at least EUR 315 billion over the next three years (2015-2017). The challenge is to break the vicious circle of under-confidence and under-investment at a time when public resources are scarce even though liquidity exists in financial institutions and on the bank accounts of individuals and

corporations, ready to be used. The Investment Plan foresees a smart mobilisation of public and private sources of finance − where every euro of public money is used to generate additional private investment, without creating new debt. To provide this additional financing and to target projects of strategic and societal importance, a new European Fund for Strategic Investments is being set up based on a proposal by the European Commission on 13 January 2015. The EFSI is a major step toward job creation and growth in the European economy.

Page 8: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives6

SPECIAL FEATURE

Last December, the 28 countries of the EU submitted 2000 investment proposals worth a total of EUR 1300 billion. This is a first step of the

European investment offensive. According to the Commission task force, the projects achievable within three years would amount to EUR 500

billion.

Juncker 315bn Plan: We need to act fast

On 9 December, for the first time in more

than five years, finance ministers meeting

in Brussels did not discuss savings meas-

ures, bailouts or painful reforms, but investments

and the future: a novelty, and the first merit of the

Juncker investment plan presented by the Euro-

pean Commission president on 26 November. He

has proposed that a European Fund for Strategic

Investments (EFSI) be set up with EUR 21 billion

in funding from the Commission and the Euro-

pean Investment Bank (EIB), with a view to raising

a total of EUR 315 billion in public and private

investment.

Asked to comment on the initiative, ministers said

that “old Europe” still had a few ideas. In as little as

two months, the task force instructed by ministers

to identify potential investments has identified no

fewer than 2 000 projects worth some EUR 1 300

billion in the medium term, including new airport

terminals, renovation of secondary schools, f lood

management systems, renovation of buildings’

energy systems, internet infrastructure, support

for research clusters and high-speed rail links.

Italy targeting EUR 81 billion

Obviously, the proposals will need to be sorted,

checked and assessed. Brussels has proposed three

key criteria: the projects should have a chance

of profitability, be useful, and ref lect European

priorities (energy, digital, research, etc.). Above

all, they must be capable of being implemented

quickly in order to have an impact on the economic

recovery. The task force estimates that the projects

submitted to it could be worth EUR 500 billion in

investment over the next three years (the duration

of the Juncker plan). Added to this are some EUR

200 billion in projects long promoted by the

European Commission, which are the “missing

links” in Europe’s infrastructure.

Looking towards 2017, Italy has submitted EUR

81 billion in projects, the United Kingdom EUR

63 billion, Spain EUR 52 billion, France EUR 48

billion and Germany EUR 28 billion. The list is

not final but is a starting point for the pipeline of

projects that the Commission and the European

Investment Bank would like to create. The

projects would be organised with the support of

EIB experts and listed on a website that all private

investors could consult.

Brussels would like to see the first selected projects

get under way in June 2015. But first the Member

States must give the green light, and the opinion

of ministers is a first test. The French finance

minister, Michel Sapin, underlined in Brussels

yesterday that the project was a good idea but that

the initial funding should be increased.

However, France is not yet ready to respond to

Jean-Claude Juncker’s call for states to contribute

to the EFSI, with the promise that this would

not be taken into account when calculating their

budget deficit. “This is not a definitive ‘no’, but,

like Germany, we believe that the focus should be

on the projects – if they are sound, the funding

will follow”. If necessary, France could always raise

money to boost the fund, he said.

“Brussels would like to see the first

selected projects get under way

in June 2015. But the Member

States must give the green light,

and the opinion of ministers

is a first test.”

Conference on the Investment Plan for Europe

On 15 April 2015 the Committee of the Regions will bring together EU policy makers and

regional and local representatives to assess the Investment Plan from a local and regional

perspective. Political leaders and investment experts will discuss in Brussels three main

questions:

• Is the Investment Plan for Europe an answer to the needs at local and regional level?

What is its potential to support growth and jobs in Europe’s regions and cities?

• What role can regions and cities play in the roll-out of the Investment Plan?

• How to guarantee and improve the own investment capacity of regional and local

authorities in times of austerity?

Backbone of the Investment Plan is a joint strategy of the European Commission and the

European Investment Bank to mobilise EUR 315 billion for additional investments in 2015-

2017. The Investment Plan explicitly mentions the role regional authorities should play,

not only in identifying, supporting or managing the investment projects, but also in the

two other strands of the Plan: making finance reach the real economy and improving the

investment environment.

A preliminary conference programme and online registration form will be available by

mid-February on the CoR website www.cor.europa.eu

Page 9: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 7

Much less than the United Kingdom and

Italy but much more than Germany and

almost as much as Spain, the list sent to

Brussels by the French government in preparation

for the Juncker plan comprises 32 projects that

could amount to some EUR 48 billion in invest-

ment between 2015 and 2017.

Digitalisation, innovation, transport, energy and

education – the five priorities set in advance by the

task force – are all addressed. But France stands

out in its emphasis on innovation and digital: these

two priorities account for 40% of the total value of

France’s projects, compared with an average of 20%

of all contributions from the 28 Member States,

Paris points out. It includes support for investment

in new generation pilot plants (at an estimated

cost of EUR 15 billion) and the project for “large-

scale” digitalisation “in Europe of terminals and

educational content” (EUR 6 billion).

The French list also highlights a number of cross-

cutting programmes rather than a multitude of

specific projects. It includes, for example, energy-

efficiency improvements to buildings and loan

schemes for SMEs that invest in robotics (EUR

1 billion). The final principle highlighted is that

the selected projects should be shovel-ready. Many

of the projects listed by Paris could begin in 2015.

While France has put greater emphasis on support

for business investment, infrastructure projects

are not ignored. Other projects include the Val de

Saône gas pipeline (estimated investment of EUR

700 million for 2015-2017), the Charles de Gaulle

express rail link (EUR 300 million over three years

starting now), the express Grand Paris Express

metro upgrade, and the extension of RER line E

to la Défense (Eole project). France also seeks to

use the Juncker plan to finance the renovation of

its railway network linking northern Europe with

Spain, and the upgrading of the Serqueux-Gisors

freight line to create an alternative freight route

serving the port at Le Havre. In terms of maritime

infrastructure, the extension of the port of Calais

is included on the list.

Furthermore, Paris wants Europe to finance a

broad urban regeneration programme totalling an

estimated EUR 5 billion in investment between

now and 2017 (EUR 25 billion over ten years). “25%

of the projects are ready but cannot be financed

immediately”, the government in Paris explains.

The aim of the project is to “regenerate 200 of the

most run-down working-class areas”, according to

the document. However, it should be noted that

the list submitted to Brussels is “indicative” and

for “illustrative purposes”. “Not all the projects

submitted will be financed, while finance may be

requested for projects not yet on the list”. Moreover,

a number of important projects are not included

on the list, either because they already receive EIB

funding (hospitals) or “because European funding

is already being seriously considered” (The North

Seine canal and Lyon-Turin rail connection).

While 40% relate to innovation and digitalisation, Paris is also counting on Europe to modernise its rail network and finance a plan for the

suburbs.

France: focusing on innovation and digital

By Fréderic Schaeffer

The 28 Member States submitted 2000 pro-

jects with a total value of EUR 1300 billion;

however, it is expected that around EUR

500 billion will actually be allocated. “This type of

list allows us to plan more carefully what is actu-

ally worth doing in Europe,” explained the Polish

finance minister, Mateusz Szczurek. Poland has

identified more than 250 projects with a total value

of over EUR 130 billion, and investment promo-

tion stimulating economic growth in Europe is one

of Poland’s priorities. Nevertheless, “the list has

not been closed because new projects could still

appear; equally, this does not mean that they will

all be implemented”, said Mr Szczurek.

The largest group of Polish proposals entailed

projects in the transport sector (EUR 63.9 billion),

energy (EUR 33.5 billion), social infrastructure

(EUR 16 billion) and natural resources and

the environment (EUR 13.3 billion). Poland

submitted projects for the digital economy and

ICT amounting to EUR 6 billion. Szczurek said

that “It is also an incentive for structural change,

which can help attract private capital and private

investment.”

In addition, the European Commission has

prepared its own list of proposals, with around 120

projects already submitted by Poland, for a total

value of around EUR 60 billion. The vast majority

of projects on this list are for the transport sector

(over EUR 48 billion), along with projects in

the energy sector, social infrastructure, health

and education. However, the actual number of

European finance ministers met on 9 December 2014 in Brussels to present their national projects for the Juncker Plan, the European

Commission’s investment plan. A special task force chaired by the European Investment Bank (EBI) and the European Commission (EC), set up

earlier this year to identify possible investment projects, has published a list of projects that could be funded under the EC Investment Plan.

Poland: 250 projects worth EUR 130 billion

By Julia Rokicka

Mateusz Szczurek, Polish Finance Minister

“While France has put greater

emphasis on support for business

investment, infrastructure projects

are not ignored.”

Page 10: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives8

investment projects that can be implemented as

well as the financing arrangements will be settled

during the legislative process. It has not yet been

decided whether the projects identified by the task

force will be considered in the Juncker package.

After verification, it will make a significant

contribution to the project pipeline created by the

European Commission under the Investment Plan

for Europe. Moreover, the list will probably also be

open for new projects.

Projects submitted by the Member States and the

Commission could be carried out in the next few

years. They have to meet the criteria set by the task

force, including economic viability, contribution

to improvement in the functioning of the single

market and creation of the basis for sustainable

growth in Europe.

SPECIAL FEATURE

I greatly welcome the Juncker Commission’s pro-

posal for an Investment Plan for Europe, which

recognises the key role of local and regional au-

thorities in its implementation and which views

these authorities as important partners in boost-

ing investment for jobs and growth in Europe. It

is widely understood that Europe urgently needs

a stimulus geared towards economic recovery, job

creation, long-term growth and competitiveness.

As representatives of European regions and mu-

nicipalities, we wish to cooperate closely with the

EU institutions, in particular with the European

Commission and the European Investment Bank,

on implementing this plan, without generating

further public debt. Perhaps it could also become

a model for the European Structural and Invest-

ment Funds, under which national co-financing

would be exempt from the deficit calculations of

the Stability and Growth Pact. We would wel-

come an assessment by the European Commis-

sion of this possibility. We should ensure that this

investment plan forms the start of a broader EU

investment strategy that ties in with the revision of

the Europe 2020 strategy and which is combined

with removing regulatory burdens. High-quality

implementation and continuation of the necessary

structural reforms should also take precedence

over speed when providing European funds. Only

high-quality public investment can constitute a

real stimulus.

Regions and cities play vital role

in driving Europe’s growth agenda

Michael Schneider (DE/EPP), President of the EPP Group

“The Investment Plan presented by the president of the

European Commission on the creation of the European

Strategic Investment Fund is an important and much-

needed initiative. I welcome this proposal with interest

and trust that the financial guarantees it sets out will

provide for the implementation of investments in such

important areas as energy, transport and broadband

Internet. However, it is vital that the adopted action

plan remains in line with the objectives of Cohesion

Policy, whose final shape is currently being negotiated

at operational programme level. While supporting

the use of all the planned instruments, I would like to

point out that in the case of financial instruments, any

decision regarding their application should be based

on the actual needs of Member States, not only on

percentage values set in the past”.

Marshal Witold Stępień

“The Investment Plan prepared by Jean-Claude

Juncker, the president of the European Commission,

may be seen in a positive light, at least as far as the idea

itself is concerned. It should, however, be noted that the

level of resources provided for under the plan is too low

given the needs identified in sectors key for increasing

competitiveness. The value of the projects put forward

by the Polish government for implementation under

the Investment Plan alone accounts for over one

third of the planned resources. Nevertheless, it should

be stressed that implementing the plan in line with

Juncker’s proposal could create 1.3 million new jobs in

the EU’s Member States”.

Marshal Adam Jarubas

“All action taken to increase investment or fight

unemployment is valuable in my opinion. The

objectives of the Juncker package are beneficial for

both Poland and the Pomorskie Voivodship; however,

it is worth noting that the success of the whole plan

will depend on the extent to which private enterprises

can get involved. Additional funds will help to attract

private capital in areas which we also consider to be a

priority such as education or transport infrastructure.

I hope that they will make it possible to focus action on

those areas where it is most needed”.

Marshal Mieczysław Struk

“Given the slowdown of the European economy, there

is a need for new investment. Our mission – and

indeed our duty – is to support the economy. We are

pleased that the European Commission plan will seek

to trigger private investment, rather than to burden our

public finances with the whole process. Priority areas

for investment: infrastructure, especially broadband

and energy networks, transport infrastructure in

industrial centres, education, research and innovation,

renewable energy and SMEs and mid cap companies

– all of these areas are of interest for Małopolska. We

are now waiting for an opportunity for the regional

authorities to have their say regarding the list of key

projects funded under the EFIS. The aim of the

programme is to give local and regional authorities

the responsibility for choosing the best investments

themselves. It is important that this valuable idea is

properly understood and carried forward for use in all

areas and levels of the EU’s activities”.

Marshal Marek Sowa

Polish CoR members comment on the Juncker Plan

Page 11: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 9

The Juncker plan has more than one merit.

The first is that it shows that the European

Commission acknowledges the current high

level of under-investment at both public and pri-

vate level. It remains to be seen whether this ac-

knowledgement will also represent a shift in terms

of ideology and action by the new Commission. Its

second merit is that it has become President Junck-

er’s f lagship project, to which he has attached his

political credibility. Building on EUR 21 billion

drawn from the EU budget and voluntary con-

tributions from Member States, the Juncker plan

may also mark the beginning of an autonomous in-

vestment policy for the EU, cleansed of the poison

of the “fair return”, whereby Member States seek

to recover with one hand what they paid into the

EU budget with the other.

Finally, the Commission’s proposal that public

investment supporting projects under the

European Fund for Strategic Investment (EFSI)

should be excluded from deficit calculations is

a step towards the CoR’s call for national co-

financing of the Structural Funds also to be

excluded from those calculations. The financial

weight of the Juncker plan may, however, seem

disappointing, particularly in comparison with

the EUR 25 billion of outstanding Commission

payments for structural funds projects! At the

same time, it would be dangerous to be obsessed

with the figure of EUR 315 billion and an overly

quantitative approach towards the expected

leverage effects. The Juncker plan should indeed

avoid windfall effects, i.e. the financing of a priori

profitable projects that are already in the pipeline.

The EFSI should intervene where traditional

financial actors would be reluctant to get involved

and take a risk. It should also trigger investment in

regions where the multiplier effect of investments

may be below 1:15 due to a less developed private

sector. What really counts in the end is not so much

the amount of capital that has been mobilised, but

rather the effects of the plan on the real economy

in terms of jobs and sustainable growth.

In order to overcome the economic crisis and to

stimulate economic growth, it is clear that Eu-

rope needs investment. However, the financial

resources that this entails cannot be supplied sole-

ly by the public sector, since it is necessary – and

right – for public authorities to limit their deficits.

It is therefore crucial that we activate private fund-

ing and put the largely dormant savings in Europe

to work.

The Investment Plan for Europe is a good initiative,

but it is questionable whether it will have the

desired impact. The entire plan is underwritten by

the EU budget, with an expected leverage ratio of

1:15. Whilst this ratio has proven to be correct for

small projects, it is doubtful whether the same can

be guaranteed on such a large scale and throughout

the EU, particularly since some regions lack

a sufficiently robust private sector that could

contribute additional financing. To increase the

amount of funding available, ALDE is calling on

each Member State to participate in the initiative

and provide additional funding or guarantees.

Regarding the projects to be funded, we have

four priorities: first, it is important that all

projects have real European added value and help

to make the economy grow. This would be the

case for investments in cross-border transport

infrastructure, the digital economy or energy grids,

as well as support to small companies. Secondly,

whilst we undoubtedly need large projects, small

projects that are implemented at local or regional

level are just as important. Thirdly, when selecting

projects we should make use of existing project

lists such as the Action Plans of the macro-regional

strategies. Finally, we should not forget that these

investments are not grants, but loans that need to

be paid back. This means that each project must be

profitable in the medium and long term. If all these

priorities can be taken into account, it is likely that

the Investment Plan will have tangible effects in

the EU, effects that most citizens will be able to

feel in their daily lives.

Financial weight of Juncker Plan

may seem disappointing

Karl-Heinz Lambertz (BE/PES), President of the PES Group

Limit public deficit and activate private funds

Bas Verkerk (NL/ALDE), President of the ALDE Group

“The financial weight of the

Juncker plan may, however,

seem disappointing, particularly

in comparison with the EUR 25

billion of outstanding Commission

payments for structural funds

projects!”

Page 12: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives10

The new EUR 315 billion EU investment

package is a very welcome development as

it is an opportunity to create jobs, stimulate

growth across the European Union. What is very

important is that it does not only focuses on large

scale projects but it also to examines and promotes

smaller projects which would make the funds more

accessible for local and regional authorities.

Often investments from the private sector are

focussed where the returns on investments are

higher and there is a danger that most of the

investment would go to centres of population and

cities. There needs to be a clear focus on rural areas

and in particular leveraging the financing of CAP

Pillar II with loans from the European Investment

Bank. There is also scope to have a clear focus on

new and emerging technologies such as tidal wave

power which not only reduces energy dependence

but can also create local sustainable jobs.

The European Alliance Group members have

been at the forefront of the CoR political views on

investments via the opinions of Witold Krochmal’s

on Long-term financing of the European economy

and Rhodri Glyn Thomas’ on Synergies between

private investment and public funding at local and

regional levels. But what is needed is a vision of

how this investment package can be used by local

and regional government and more importantly

that they have direct access to the projects so that

finally we can see a ‘real’ growth in jobs across the

EU.

The end of last year saw the unveiling of the

long-awaited EU investment plan that is

aimed to boost growth and jobs. The goal

is a very important one but it remains unclear if

the plan can deliver. Questions remain over how

we will avoid a situation of privatising the profits

and nationalising the losses. Furthermore, ques-

tions also remain over how projects will be identi-

fied and how bottom-up this process will be. For

effective targeting of finances and identification of

programmes, local and regional authorities must

be fully consulted and involved in the process.

I would like to welcome strongly the aspect of the

plan that focuses on cutting red tape. Red tape is

a major bottleneck to growth and must be cut. In

identifying these bottle necks, local and regional

authorities must be given the opportunity to

identify the burdens they see from implementing

most of the decisions taken at the EU level.

Investment package must be accessible

to all local and regional authorities

Uno Silberg (EE/EA), President of the EA Group

It remains unclear if the Juncker Plan

can deliver

Cllr Gordon Keymer (UK/ECR), President of the ECR Group

SPECIAL FEATURE

“What is very important is that it

does not only focuses

on large scale projects but it also

to examines and promotes smaller

projects which would make

the funds more accessible for local

and regional authorities.”

“Questions remain over how we

will avoid a situation of privatising

the profits and nationalising the

losses.”

Page 13: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 11

The announcement by Jean-Claude Juncker, President of the European Commission, of his new investment package and the European Fund for

Strategic Investments (EFSI) has reinvigorated the debate about the role of government in financing public services. Following the European

Parliamentary elections in 2014, new politicians and commissioners taking their seats in Brussels are looking at a European landscape where

the economic situation is moribund, with high levels of public and private debt and a lack of growth.

Will the Juncker investment package succeed?

Economists will distinguish between the

situations in different Member States, with

some like the UK showing signs of growth

in the private sector, and others like Germany con-

tinuing to see stable costs of sovereign debt. Re-

gardless of the national circumstances, the need to

get the European economy going again is of impor-

tance to all. The risk of stagnation and Eurozone

deflation poses a risk to the economies of nations

not in the zone, and the development of a func-

tional single market requires a levelling up of the

economic playing field. The issue of immigration,

such a significant factor in the European elections,

is a publicly visible symptom of this issue – a sin-

gle market with free movement of people naturally

leads to economic migration, but for many people,

opportunities close to home would be preferable.

So the question is, will the Juncker package deliver

for Europe?

Nationalising the debt and risk

The first challenge is likely to be moving the

debate to a shared understanding of what we

mean by ‘investment’ after decades of left-wing

politicians describing all forms of public spending

as ‘ investment’. By prioritising infrastructure,

Juncker clearly buys the argument that putting

money into public works generates private profit

that can then be taxed, bringing about a real

return to the taxpayer who currently faces huge

levels of government debt. The practical reality of

this will require a rigorous business-like approach

to project funding and the decision to make the

fund one that seeks to lever in private finance is

helpful provided governments do not subsequently

underwrite the risks associated with the projects.

Nationalising the debt and risk is essentially just

socialist redistribution by another name and

financially disastrous, as many EU Member States’

economies are currently finding having pursued

this line for financing many activities already.

The second challenge is going to be ensuring that

as the project pipeline develops and the assistance

programme kicks in, that we do not fall into the

trap of seeing EFSI as an extra-national subsidy for

unviable national projects. Good intentions at EU

level risk being translated at national, regional or

local level into seeing EFSI as simply an alternative

source of borrowing that will ultimately fall to

the taxpayer rather than generating a real return.

Ensuring that the bureaucracy around the funds

does not lead into a confusion of red tape where

profits are made by accountants, consultants and

lawyers at the expense of taxpayers but no-one else

is key.

Europe remains the largest and wealthiest

economic bloc in the work. The risk is that in the

absence of growth, we fall to taxing diminishing

wealth in order to prop up unsustainable levels

of public spending. This short term solution, so

favoured by the left, is inevitably doomed - as

the saying goes, ‘the trouble with socialism is

that eventually you run out of someone else’s

money’. With the Juncker plan due to be in

action by 2015, we need to ensure that it is based

in sound finances.

“The first challenge is likely to be

moving the debate to a shared

understanding of what we mean

by ‘investment’ after decades of

left-wing politicians describing

all forms of public spending as

‘investment’.”

Cllr David Simmonds (UK/ECR), David Leader of Hillingdon London Borough Council

Page 14: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives12

In its Strategic agenda for the Union in times of change of June 2014 the European Council warned that “public disenchantment with politics

has grown”, expressed its concern about insufficient growth and stated that “unemployment is still our highest concern – especially for young

people – and inequalities are on the rise”. Equipping our societies for the future and fostering confidence must therefore be “the first purpose

of the Union’s work over the coming years”.

New opportunities under the EU’s economic governance framework

Following up on this assessment, the new EU

legislature is putting strong emphasis on bet-

ter policy coordination, increased involve-

ment of relevant stakeholders and simplification

to mobilise synergies, knowledge and ownership in

relation to the Union’s fresh effort to boost growth

and jobs. Unlike its predecessors, the Annual

Growth Survey (AGS) for 2015 sets only three

priorities, strictly linked to each other: investment,

focusing on the Commission’s Investment Plan,

structural reforms and fiscal consolidation. To in-

crease effectiveness, transparency and simplifica-

tion, the work programme of the European Com-

mission for 2015 includes a list of initiatives to be

dropped, a list that was drafted under the respon-

sibility of the Commission’s First Vice-President,

who presides over the review of existing legislation.

In 2015, other policy processes will generate

synergies in the same direction:

- following the Partnership Agreements with

the 28 Member States, the adoption of

the Operational Programmes of the ESIF

2014-2020 will launch a new phase of EU-

supported investment focused on the Europe

2020 goals and targets;

- the mid-term review of the Europe 2020

strategy for smart, sustainable and inclusive

growth will come to an end in February-

March, when the Commission will publish its

proposals for a revised strategy in 2015-2020,

before the Spring European Council endorses

them at the end of March.

Recommendations and proposals

To ensure more effective implementation – and

increased ownership – of Europe 2020, the

Committee of the Regions’ Athens Declaration

(March 2014) calls for the revised strategy to be

given a genuine territorial dimension by:

- building on EU regions’ and cities’ differential

growth and employment potential, by setting

varying regional goals and targets;

- involving local and regional authorities as

partners in the design of the National Reform

Programmes, whose implementation should

be underwritten by multi-level governance

agreements.

To this end, the Declaration puts forward the

following recommendations:

1. setting different regional objectives and

targets;

2. designing and delivering National Reform

Programmes in partnership between all levels

of government;

3. making multi-level governance the standard

approach;

4. aligning the European Semester with longer-

term Europe 2020 goals and investment

needs;

5. using the Europe 2020 Flagship Initiatives for

enhanced policy coordination;

6. mobilising funding for long-term investment,

to ensure better spending;

7. strengthening administrative capacity for

more effective implementation.

In December 2014, the Steering Committee of

the CoR’s Europe 2020 Monitoring Platform

translated these recommendations into 20

concrete proposals, included in the Blueprint for a

revised Europe 2020 strategy.

Making the most of the 2015 Semester

The 2015 European Semester started in November

2014 with the publication of the 2015 Annual

Growth Survey, which states that “national

and regional authorities have a key role to play

in promoting the necessary structural reforms,

exercising fiscal responsibility and boosting

investment in support of jobs and growth”.

The AGS for 2015 proposes a streamlining

and reinforcement of the European Semester.

In particular, the early publication of a single

economic assessment per Member State, in

March, will favour broader involvement of all

relevant stakeholders in providing input to the

Commission before it issues the Country-Specific

Recommendations. Much emphasis is also being

placed on the opening up of the process, to increase

the legitimacy of the Semester and ownership of

the strategy.

Regrettably, while praising the role of LRAs in

promoting investment at regional level, the AGS

still does not see local and regional authorities

as partners in the design and implementation

of the National Reform Programmes, and does

not encourage any broadening of multi-level

governance in their implementation. Moreover,

while stressing the role of the ESIF 2014-2020, the

AGS does not clarify how the Member States and

regions most in need of public investment could

avoid cutting the national co-funding of the ESIF

if the latter is counted in calculating SGP-related

expenditure ceilings.

All in all, the Annual Growth Survey for 2015

is a step in the right direction, towards better

acknowledging the key role of local and regional

authorities in investment and change in the

European Union, also to increase ownership of

the whole Semester process. These are promising

signs for shifting the Europe 2020 strategy focus

from purely fiscal consolidation towards more

long-term investment and greater ownership at all

levels.

POLICY ANALYSIS

Page 15: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 13

LATVIAN PRESIDENCY OF THE COUNCIL OF THE EU

In the first half of 2015, we will assume the Presi-

dency of the EU Council – a role that implies

a high level of responsibility. During our first

ten years of membership to the EU, both Latvia

and the EU have undergone positive changes and

overcome difficult challenges. Nevertheless, EU

citizens continue to enjoy freedoms that many in

the rest of the world want to replicate and are ready

to give their lives for.

It is true that many in Europe still experience the

consequences of the crisis but the EU’s economy is

gradually recovering. To sustain this momentum,

the EU needs to find the best ways to promote

growth, to fully exploit the potential of the emerg-

ing digital economy and engage actively in world

affairs. That cannot be done without investment

in crucial infrastructure and without a continued

commitment to reforms aimed at reaching the

Europe 2020 strategy goals. A close cooperation

of all EU member states and institutions is a pre-

condition to sustainable growth. This includes the

Committee of Regions, which is the institution

that brings EU affairs closer to our citizens.

In doing so we want to secure that our outreach

is as wide as possible when making decisions of

concern to EU citizens. Furthermore, to increase

growth and reduce disparities across the EU, we

need public-private partnerships at both national

and local levels that contribute to creation of jobs

and reduce social exclusion. We cannot advance

without investment in infrastructure and without

sustainable and efficient energy supply, where re-

gional and local authorities have a key role. During

the Latvian Presidency, the EU Member States

and institutions will be reviewing the Europe 2020

strategy for growth and jobs. The Committee of

Regions that represents the EU’s local and regional

authorities has always played an important role in

the implementation of this important EU strategy

for economic recovery and employment.

The Latvian Presidency wishes

to contribute to the digital single market

Local and regional authorities are important not

only for economic development, but for the key

role they play in preserving cultural heritage,

knowledge building and transfer, communication

and innovation. To ensure the widest possible par-

ticipation in activities addressing economic and so-

cietal issues, we need to make use of digital tools in

overcoming the geographic distance separating EU

citizens. The Latvian Presidency wishes to con-

tribute to the digital single market, while focusing

on internet security and reliability. Ensuring the

involvement of different groups of various ages is

key for creating long-term competitiveness.

The development of a Digital Single Market also

includes measures for removing barriers to cross-

border online trade and measures that focus on

protecting consumer and privacy rights online.

Furthermore, through the debate on the next stage

for eGovernment Action Plan, we want to address

easier and faster access to public administrations,

the use of open processes and promotion of digital

skills for all. To face economic, social and global

challenges, we must become digital by default,

that is, to include digital aspects and solutions in

all policy areas and initiatives where it is possible.

This also cannot be done without active involve-

ment of the local and regional authorities.

Responses to global challenges shall be made at

the EU and national levels and also locally. Some

regional and local authorities have already become

active players in cross-border relations. The im-

portance of regional cooperation is growing. Con-

sequently, cooperation between EU countries, the

EU’s strategic partners and its neighbours is un-

thinkable without cooperation at the regional and

local level. This provides a much better exchange

of information at the political, administrative,

business and community levels.

Because of the knowledge its members have to the

challenges that the Europeans face in their daily

lives, the Committee of Regions has always been

very successful in ensuring a link between the EU

institutions and regions. When drafting opin-

ions on the European Commission proposals, the

Committee of Regions provides feedback from the

final beneficiaries, the EU citizens, to the decision

makers at the EU level. This continuous dialogue

has enabled decisions and adoption of laws in a way

that is more efficient. The Latvian Presidency of

EU Council will therefore work closely with the

Committee of the Regions on our common objec-

tive, that is, increased welfare of EU citizens.

A plea to work together for a better future for all

Laimdota Straujuma, Prime Minister of the Republic of Latvia

Page 16: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives14

Latvia has taken over the post of the Presidency of the Council of the European Union (EU) for the first semester of 2015. In this role, it will

ensure that the Council of the EU facilitates accomplishment of the ambitions set out in two strategic documents: the Strategic Agenda for

the Union in Times of Change adopted at the European Council in June 2014 and the Agenda for Jobs, Growth, Fairness and Democratic Change

announced by the President of the European Commission. The Presidency has chosen three priority areas to contribute to this process: Competitive

Europe, Digital Europe and Engaged Europe.

Priorities of the Latvian Presidency

COMPETITIVE EUROPE

The Presidency’s priority is to create more jobs

and revive economic growth. Based on our own

experience we know that this is possible by

becoming more competitive through efficient

structural reforms, which are supported by

growth stimulating investment measures. Hence

we commit to fast-track procedures in the Council

on the Investment plan for Europe aimed at

unlocking public and private investments in the

real economy. We will also continue work on

the reduction of administrative obstacles and

continued development of the Single Market in

order to increase entrepreneurial activity. This will

allow us to truly benefit from the multiplication

effect of investment.

The Presidency will ensure implementation of

the streamlined European Semester based on

the goals of the renewed Europe 2020 strategy.

Latvia will work towards increasing the quality

of discussions in the Council, securing proper

involvement of all of Member States, and urging

the involvement of other stakeholders and national

parliaments in the discussions on Country Specific

Recommendations.

The Presidency will prioritise the work on the

fully functioning Single Market by moving ahead

on the remaining Single Market Act II proposals.

Our guiding principle will be ensuring the four

freedoms. We will work towards the reduction

of barriers, including administrative ones, by

promoting the principle of Better Regulation and

using competitiveness proofing in a wider extent.

Now is the right time for the Energy Union to

become a reality. We need to have an Energy policy

in the EU that is built on solidarity, trust and

security. The EU needs a more integrated energy

infrastructure grid and better governance, where

in particular regional governance has not been

fully exploited across the Europe. The Presidency

will enhance the competitiveness of EU industry

and related service sectors. For this purpose,

it will facilitate discussion on roadmap for the

implementation of the Industrial Renaissance.

DIGITAL EUROPE

Another of the Presidency’s priorities is the

development of a true digital Europe. In order to

create new areas for growth and new jobs we should

seize the opportunities provided by information

and communication technologies. The Presidency,

among others, will focus on building a stronger

and more coherent data protection framework.

Safety in digital environment will be moved to the

forefront.

The Presidency will devote particular attention in

advancing consensus on the post-2015 activities

by facilitating discussions on the Digital Single

Market strategy. The Presidency will also seek

an overall compromise on the Telecoms single

market. We will need to find a balanced solution

on roaming and work on network neutrality. Our

guiding principle will be to find a balance between

high quality of services and a reasonable cost for

EU citizens. In order to advance the digitalisation

of Europe we must become digital by default. The

Presidency will highlight discussions on digital

skills and the next steps regarding promotion of

eGovernment.

ENGAGED EUROPE

Europe has the responsibility to remain engaged

on global issues. With conf licts on the EU’s

doorstep the situation in our neighbourhood

is as challenging as ever. The European

Neighbourhood Policy review and the Eastern

Partnership dimension in particular should be

strengthened, while maintaining a strong focus on

the Southern Neighbourhood. During the Riga

Eastern Partnership Summit we should send a

strong signal that neighbourhood policy remains

a policy priority.

EU’s engagement also includes a commitment

towards strengthening the transatlantic

partnership, notably by advancing the

Transatlantic Trade and Investment Partnership,

and enhancing relations towards other strategic

partners. Similarly the Presidency looks forward

to conclusion of EU-Canada Comprehensive

Economic and Trade Agreement, and advancement

of EU- Japan negotiations.

The Latvian Presidency looks forward to the

review of the EU Central Asia Strategy through

enhanced discussions on security, border

management, energy supplies, and education

exchange, while addressing also the interests of the

civil society and human rights.

The year 2015 is also the European Year

of Development, the focus of which is the

negotiations on post-2015 framework, including

new Sustainable Development Goals. We will

specifically highlight gender equality and women’s

empowerment. In parallel to the aforementioned

issues, the Presidency will remain committed to

move forward with the enlargement policy as well

as to tackle institutional issues where necessary

and within the existing treaties.

Latvian Presidency of the Council of the European Union

LATVIAN PRESIDENCY OF THE COUNCIL OF THE EU

Page 17: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 15

EUROPEAN YEAR FOR DEVELOPMENT

2015: The European Year for Development

With a view to achieving the objectives adopted at Rio in 2000 and with the conclusion of United Nations discussions on development

objectives for the coming fifteen years, as well as the recent international negotiations on climate change and the Conference of the

Parties (COP) in Paris, 2015 is likely to be a historic year for development. It is against this background that the European Union decided

to designate 2015 the European Year for Development (EY2015). Thus for the first time in its history, the EU has chosen an external policy as the

theme for the European Year.

With this decision, which the Committee

of the Regions has promoted and sup-

ported from the outset, the EU as one of

the world’s most prosperous regions is confirming

its wish to be a global player that does not forget

to support the most disadvantaged. The choice of

the European Year for 2015 is also a paradoxical

one for the European Union as the main provider

of global development aid. On the one hand, a

clear majority – over two thirds – of Europe’s citi-

zens believe that combating poverty in developing

countries should be an EU priority, and even more

– almost 85% – think that it is important to help

people in developing countries. On the other hand,

only a minority of these same citizens are aware of

the objectives and thrust of policies pursued, and

less than one in six has heard of the Millennium

Development Goals, which have guided develop-

ment policies over the past fifteen years.

Our world, our dignity, our future

With the catchphrase Our world, our dignity,

our future, the European Year for Development

2015 has three aims: firstly to raise awareness

and inform Europe’s citizens about development

cooperation, secondly to encourage debate and

direct participation of citizens, and thirdly to bring

about a change in mentality and behaviour so

that people are more aware of development policy

issues.

The Committee of the Regions, whose political

priorities include supporting the role of local

and regional authorities in external relations and

development cooperation, will be taking part in the

EY2015 campaign. The Committee has adopted a

number of opinions on the role and place of LRAs

in development policy, for instance its opinion on

Local authorities: actors for development (CdR

312/2008), responding to the EU’s first reference

document, which was issued in 2008 to underline

the importance of local and regional authorities

in the EU’s development policy, or the opinion

adopted in 2013 on the European Commission

communication Empowering Local Authorities

in partner countries for enhanced governance

and more effective development outcomes

(COM(2013) 280 final). Further to a resolution

adopted in April 2013, the CoR is now drawing

up an opinion on the European Commission

communication A decent life for all: ending

poverty and giving the world a sustainable future,

in conjunction with the discussions about the

international post-2015 development agenda. This

opinion will be presented at the plenary session

during the first half of 2015.

As part of the 2015 European Year for Development

campaign, the CoR plans to highlight the many,

diverse and often crucial contributions from LRAs

on general or sectoral development policies. It

wishes in particular to promote the local activities

conducted by LRAs across the European Union.

The CoR is therefore asking LRAs to take part

in the debate on development policy, and to step

up their communication, particularly addressing

young people, on development policy and local

initiatives. In this connection, the CoR notes

that it is available to support local activities

and suggests that the LRAs should promote

their initiatives relating to EY2015 both on the

European decentralised cooperation portal and

on the official EU site of the European Year for

Development 2015.

Fourth Assises of Decentralised Cooperation

In addition, the Committee of the Regions will be

co-organising the Fourth Assises of Decentralised

Cooperation for Development together with the

European Commission on 1 and 2 June 2015,

which will bring together in Brussels almost one

thousand representatives of EU local and regional

authorities and from developing countries to

engage in political dialogue. The Assises will be

a major contribution to the European Year for

Development.

By Bernard Chane Kune

Page 18: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives16

President Lebrun: Local and regional authorities can tackle global poverty by offering aid adapted to the needs of communities

The President of the European Committee of the Regions, Michel Lebrun, joined EU leaders including President of the European Commission,

Jean-Claude Juncker, and the Prime Minister of Latvia, Laimdota Straujuma, for the launch of the European Year for Development in Riga,

Latvia. During his speech he stressed the importance of local and regional government in not only raising awareness among citizens of the

importance of development aid, but how they can share knowledge to make aid more efficient and effective.

“With the EU committed to spend-

ing EUR 51.2 bn on development

aid between 2014-2020 reaching

some 150 countries worldwide, the EU is the larg-

est provider of aid in the world. We should never

forget that many European regions and cities are

heavily involved using their financial, technical and

human resources. There is a need to increase Eu-

ropean public awareness and we want to make sure

that regional and local authorities working on the

ground get the strongest possible support”, stated

President Lebrun.

He further reminded the audience that local and

regional authorities were among the first to deal

with problems such as hunger, poverty, health

and access to water or global environmental

challenges such as climate change. European local

and regional authorities, he added, can help tackle

global poverty offering aid adapted to the needs of

local communities and so strengthen the capacity

of their counterparts in developing countries.

Michel Lebrun therefore called on other EU

leaders to develop a strategy that involves all levels

of government, “because only if we all are working

together closely we can face this challenge more

effectively”.

The CoR will host a number of events including

the Fourth European Assises of Decentralised

Co-operation , in partnership with the European

Commission, in June 2015. This major event held

every two years brings local and regional authorities

from the EU and developing countries, as well

as representatives from the EU institutions and

Member States, together to promote sustainable

development policy to consider the vital role of

local authorities.

Opening ceremony of the European Year for Development (EYD) 2015. The event entitled “Our world, our dignity, our future” was hosted by the first Latvian Presidency of the Council of the EU. Laimdota

Straujuma, Seamus Jeffreson, Henri Malosse, Jean-Claude Juncker, Federica Mogherini, and Michel Lebrun, President of the Committee of the Regions (CoR), observing one minute of silence

as a tribute to the victims of the terrorist attack at the headquarters of the French satirical weekly newspaper “Charlie Hebdo” in Paris (from left to right).

Page 19: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 17

What is the background to this own-initiative

opinion of the CoR on the Transatlantic

Trade and Investment Partnership (TTIP)?

The TTIP will have major implications for cities

and regions and it is now important for the CoR to

discuss it. So far, the Commission has not involved

the Committee of the Regions in its deliberations.

This in itself gives the Committee good reason to

set out its positions, expectations and any concerns

in relation to the TTIP.

Why is the TTIP important for cities and

regions? And what are your concerns?

My first question is what implications the TTIP

has for individual citizens. My initial impression

is that opinion on the TTIP is polarised. This

is because people are very aware that Europe is

more than a purely economic community. The EU

sees itself as a community of values, representing

shared values such as promotion of social equal-

ity, combating social exclusion and improving the

quality of the environment. So people ask whether

this trade and investment agreement between the

EU and the United States really helps to under-

pin these values. I believe that many citizens have

concerns.

And how would you respond to those

concerns?

You know, I am very fond of the cinema, especially

French films. But that doesn’t mean I only see

things in black and white. We must get away from

the idea that Europe is the “good cop” and America

the “bad cop”. That is why I tend to take the posi-

tion of “yes, but” on these negotiations. I say yes

to deeper trade, yes to dismantling tariffs, yes to

transparency. And definitely yes to a trust-based

partnership with the United States. But not at any

cost: not at the cost of hard-won standards and cer-

tainly not at the cost of cohesion in our societies.

What would you not accept?

I will name just a couple of points here, things

that are relevant to the cities and regions. To begin

with, the issue of maintaining the constitutional

system of local authorities in the sphere of public

services: we absolutely must ensure that local au-

thorities retain their freedom to deliver, organise

and finance public services. Another issue is that

there should be no lowering of standards, e.g. in

relation to labour law or consumer protection.

And it is also important that there should not be

any special arrangements for investor-state dispute

settlement, or ISDS. There seems to be no point

in such arrangements between two fully developed

systems based on the rule of law. In short: the

TTIP may open up opportunities for economic

growth in Europe, but we must not on any account

sacrifice our achievements in Europe on the altar

of free trade.

Interview with Markus Töns, Member of the Landtag of North Rhine-

Westphalia and rapporteur on the Transatlantic Trade and Investment

Partnership (TTIP)

We must get away from the idea that Europe is the ‘good cop’ and America the ‘bad cop’

Page 20: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives18

In the past months we have celebrated the 10th

anniversary of the 2004 EU enlargement and

taken part in the European Parliament elec-

tions. For Poland this year was even more impor-

tant, as we commemorated the changes of 1989,

which contributed to the democratisation of pub-

lic life not only in our homeland, but also in other

countries in Central and Eastern Europe. The

Polish experience of implementing structural re-

forms has proved, among other things, that local

and regional authorities are influential actors who

face key challenges.

This knowledge can be of great value for Ukraine,

which has started on its arduous road towards a

united Europe. Since the involvement of regions

and cities is crucial for developing democratic pro-

cesses, Ukraine should start the decentralisation

of power by strengthening local self-government.

I believe this ambitious goal could be achieved

by joint work between the EU Member and the

Ukrainian authorities. Projects currently run by

Warmia and Mazury (e.g. study visits of health

specialists from my region and Rivne Oblast) are

good examples of the importance of interregional

cooperation.

The ratification of the Association Agreement

with the European Union and the victory of pro-

European politicians in the recent elections have

shown that Ukraine is ready for change. How-

ever, in view of the current situation in Eastern

Europe, Ukraine cannot be left alone in the battle

for a better future. We must be particularly united

and strong, otherwise the EU will lose Ukraine

forever.

Ukraine has started out on its long road to Europe

Jacek Protas (PL/EPP), Marshal of Warmińsko-Mazurskie Voivode

Ukraine’s President and Prime Minister were among those

who attended the rally that had as its slogan “I am Volnovakha,”

in memory of the 13 passengers who died near the city

of Volnovakha after their bus was hit by artillery shelling

on 13 January 2015.

Page 21: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 19

Following discussion by the Committee of the

Regions’ ECOS Commission, the CoR opin-

ion on Extending geographical indication

protection to non-agricultural products drafted by

Marialuisa Coppola (regional councillor and min-

ister, Veneto Region) is scheduled for adoption in

February. The draft opinion comes in response to

a European Commission Green Paper (and respec-

tive consultation). It confirms the EU’s keen inter-

est in protecting local products and advocates the

launch of a fully f ledged legislative process in the

field.

The draft opinion highlights various reasons for

supporting an extension of certification of origin.

As has proven the case with foodstuffs, geographi-

cal indications are an important factor in protect-

ing jobs and property rights, as well as an effec-

tive deterrent to relocation and anti-competitive

practices. Moreover, by providing an incentive for

Marialuisa Coppola (IT/EPP), Regional Councillor and Minister, Veneto Region

Extending geographical indication

protection to non-agricultural products

The European Commission, with the support

of the EP and the Council, has decided to es-

tablish A new EU Framework to strengthen

the Rule of Law, and rightly, since the rule of law

is one of the three pillars of any democratic system,

together with democracy and human rights. The

new framework is based on the premise that the

rule of law is the backbone of any modern consti-

tutional democracy and one of the founding prin-

ciples stemming from the common constitutional

traditions of all the Member States, and as such

one of the main values upon which the Union – as

an area of freedom, security and justice – is based.

The aim is to deal with threats to the rule of law

before TEU Article 7 comes into effect.

The CoR has already published a number of opin-

ions on key aspects of this issue. This own-initi-

ative opinion examines the various dimensions as

a whole and for the first time establishes a bridge

between the principles of the rule of law on the one

hand and multilevel governance on the other. This

system that was developed in stages will make it

possible to move from a “top-down” approach to-

wards a more inclusive model where all levels of

government are actively responsible together with

players in society.

Potential violations of fundamental rights must

be more broadly conceived, ref lecting a system-

atic political will to also implement the rule of law

in a positive way. Local and regional authorities

(LRAs) are on the front line in facing the challeng-

es and problems that arise in many fields, and they

are particularly valuable in terms of their expertise

and their focus on results. Together with civil soci-

ety players, LRAs are essential partners not only in

protecting the modern state governed by the rule of

law but also in working actively and strategically to

shape it, via their own policy initiatives. This obvi-

ously concerns specific citizens’ rights, but equally

intercultural relations in a pluralistic society and

socio-economic development, and education,

health and welfare systems.

Our opinion firstly offers a number of specific poli-

cy recommendations for local and regional authori-

ties: including the general public in the debate and

raising awareness, embedding this in the activities

of civil society organisations, guaranteeing train-

ing and support for those concerned, and setting

up information points and an early-warning system

through which information is passed on to nation-

al and EU authorities. But recommendations are

also made for the Committee of the Regions itself:

possible introduction of a task force and reporting

point, conducting of a general European aware-

ness-raising campaign, drawing up a covenant with

cities and regions, and lastly drawing up a common

strategy based on a “tripartite entente” with the

Congress of Local and Regional Authorities of the

Council of Europe and the Agency for Fundamen-

tal Rights.

A European area of fundamental social rights will

thus be created founded on multilevel governance

and horizontal interconnections, with the develop-

ment of a really dynamic and integrated policy.

Multilevel protection of the rule

of law and EU fundamental rights

Luc Van den Brande (NL/EPP), former President of the CoR

RAPPORTEURS HAVE THEIR SAY

In this column, members of the Committee of the Regions explain what motivates them to take on the role of as a rapporteur. The following

op-eds cover a diverse range of topics from multilevel governance and fundamental rights to company restructuring.

Page 22: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives20

RAPPORTEURS HAVE THEIR SAY

Cultural heritage creates significant economic

and social wealth, which directly benefits

Europe’s regions, cities and municipalities.

Despite it also being a cornerstone of local, region-

al, national and European identity, in an opinion

for the EU Committee of the Regions entitled “To-

wards an integrated approach to cultural heritage

for Europe”, György Gémesi, Mayor of Gödöllő

(Hungary), emphasises that insufficient value is

attached to cultural heritage.

According to the rapporteur, “Our common task

is to respond to the challenges with a strategic, ho-

listic and integrated approach and as a means of

achieving genuine cooperation between the differ-

ent areas of Europe’s cultural heritage. The sus-

tainable development of cultural heritage should

have positive repercussions in the short, medium

and long term and bring about improvements to

the economic situation and quality of life in the

regions concerned.”

Mr Gémesi points out that cultural heritage can

help shape the profiles of municipalities and re-

gions and can contribute significantly to achieving

the Europe 2020 strategy goals and strengthening

social cohesion. He underlines the key role played

by cross-border and town-twinning schemes in

promoting a mutual, interactive and experience-

based understanding of local and regional cultural

heritage and of its diversity, through the active in-

volvement of the public. Mr Gémesi also considers

it important for thematic cultural heritage coop-

eration schemes to be set up and implemented in

urban and rural municipalities, and for all stake-

holders to be encouraged to play an active part in

the decision-making process, in order to promote

effective participatory governance

It is vital to continue to play a leading role in

promoting high standards for working condi-

tions both in the EU and worldwide, supporting

business growth and competitiveness by ensuring

health and safety at work in times of crisis.

This is a primary objective of the CoR opinion on

the new EU strategic framework for 2014-2020.

The opinion offers practical proposals for cutting

red tape and simplifying existing legislation, en-

couraging SMEs, risk assessment, social dialogue,

and reducing variations in legislation and imple-

mentation in the EU market. It aims at a new view

of European governance on health and safety at

work, strengthening strategic and operational in-

tegration between the various competent EU and

national institutions.

The opinion’s central proposal concerns the es-

tablishment of a European board responsible for

defining, coordinating and developing health and

safety at work issues, partly in order to play a more

effective role as a point of reference for Member

States implementing EU legislation.

The new Board should take the organisational

form of a network, coordinating and generating

synergies between the various competences which

are currently scattered across many national and

European bodies (notably EU-OSHA and Eu-

rofound), whose remits and functions need to be

reconfigured.

The opinion also stresses the need to develop a “cul-

ture of prevention” (with initiatives at school and

during apprenticeships, occupational training and

lifelong learning) alongside a genuine, up-to-date

“business culture” based on the belief that quality

in people is a determining factor in the quality of

industrial processes and products.

The future of European cultural heritage

György Gémesi (HU/EPP), Mayor of Gödöllö

EU Strategic Framework on Health

and Safety at Work 2014-2020

Mauro D’Attis (IT/EPP), Municipal Councillor of Brindisi

increasing local production, they could boost the

competitiveness of regions whose development is

below the EU average. The opinion also points out

the potential benefits for consumers, who would

have a clearer indication of product authenticity,

and the positive impact on conserving the artis-

tic and cultural heritage of the areas concerned.

In contrast to the system for foodstuffs, however,

the opinion advocates a simpler protection regime

using easily recognisable labels in the language of

origin and/or English, avoiding a proliferation of

labels which could cause confusion.

CoR president Michel Lebrun has already ex-

pressed his support. Given the proposal’s strong

regional dimension and the competences of the

Committee of the Regions, the CoR trusts that the

EU’s local and regional authorities will be actively

involved in subsequent steps, which should see the

tabling of a full-scale legislative proposal.

Page 23: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 21

Csaba Borboly has drawn up an opinion on

sustainable buildings, having been appoint-

ed rapporteur by the Committee of the Re-

gions’ Commission for the Environment, Climate

Change and Energy (ENVE), at its meeting of

19 June in Brussels. Mr Borboly is the President

of Harghita County Council (Romania) and has,

since 2012, been a member of the Committee of

the Regions, where he is active in both the ENVE

Commission and the Commission for Education,

Youth, Culture and Research (EDUC). The draft

opinion was adopted by the ENVE Commission

at its meeting of 11 December in Brussels and is

due to be discussed in plenary during the first half

of 2015.

The overall aim of the Commission’s initiative on

sustainable buildings is to reduce the environmen-

tal impact of buildings by improving resource ef-

ficiency, thereby increasing competition between

construction companies. It is therefore essential to

improve the general understanding of the use of re-

sources, to draw the public’s attention to buildings’

impact on the environment, to carry out campaigns

to raise awareness and to boost demand for eco-

buildings in the private sector, among designers

and within public institutions. The opinion high-

lights the programmes based on the traditional lo-

cal architecture of Harghita County, while using

new technologies and approaches, and emphasises

the potential for the use of conventional and renew-

able construction materials, particularly wood.

Before drafting his opinion, the rapporteur held

a number of talks, in particular with Harghita

County’s architects and civil engineers, to ensure

that the challenges faced at the local and regional

level are taken fully into account at the EU level.

Mr Borboly then continued his consultations in

Brussels, firstly with the members of the European

Economic and Social Committee (EESC), an EU

advisory body, and subsequently with representa-

tives of the European Commission’s DG Environ-

ment (ENV) and DG Enterprise and Industry

(ENTR). László Csák, the rapporteur’s expert,

also took part in these meetings. A consultation

meeting on the matter was then held on 23 Octo-

ber at the Committee of the Regions’ building, with

representatives of the EU institutions, stakeholder

organisations and relevant European regions and

governments and on 20 November, the rapporteur

also met Eduardas Kazakevicius, representing the

European Commission’s Directorate-General for

Climate Action.

Once regarded as the domain of legal special-

ists, public procurement is of growing im-

portance for politicians too. “Procurement

rules are not merely about purchasing goods and

services, but can also be an instrument to shape

local policy on sustainability, innovation and so-

cial policy” notes Mr Jonkman. With the growing

inf luence of EU policy on local politics, it is im-

portant to keep an eye on the balance of power.

Mr Jonkman sees an important role for the ECR

Group in this respect, especially regarding the

principle of subsidiarity. “EU rules on procurement

have to leave enough room for public authorities

and companies to close the contracts they need and

take into account local circumstances. We do not

need unnecessary details on EU level that will only

cause red tape” said Mr Jonkman.

Simplification and reduction of administrative

burdens were key messages for Mr Jonkman dur-

ing the negotiations of the public procurement

directives. “We tried to bring companies and mu-

nicipalities back at the heart of public procurement

policy, instead of lawyers. This will also remain

our focus during the implementation process next

year. National gold-plating in this perspective will

be unacceptable”, stated Mr Jonkman.

Mr Jonkman will use his experience on public pro-

curement to participate in the ECR Group work

on other internal market dossiers. Mr Jonkman

concluded that “it is important to take part in the

European debate at an early stage. The EU institu-

tions do not know the reality on the ground. We

are the level closest to companies and citizens and

can add that dimension to the European debate.”

Resource efficiency opportunities

in the building sector

Csaba Borboly (RO/EPP), President of Harghita County Council

Procurement rules can be an instrument

to shape local policy

Rob Jonkman (NL/ECR), Councillor of Opsterland municipality

The new ECR Group member Rob Jonkman, Councillor of Opsterland municipality in Netherlands, has a vast knowledge in the area of on state

aid and public procurement. In the past couple of years Mr Jonkman represented all Dutch municipalities during the negotiations on the

EU procurement directives. At the moment he is a member of the Board of Europa Decentraal, a knowledge centre for local and regional

governments in the field of procurement and state aid. He combines this role with the internal market portfolio for which he is responsible in the

national association of municipalities.

Page 24: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives22

On 30 July 2014, the Commission issued

a communication setting out the rules

for implementing the principle of macro-

economic conditionality for cohesion policy. The

Committee of the Regions had already voiced its

strong opposition to this principle, pointing out

that it penalises regions which are not responsible

for the national level’s macroeconomic errors and

that it amounts to sanctioning regions in difficulty.

In his opinion, Bernard Soulage, vice-president of

the Rhône-Alpes region for Europe who, in that

capacity, negotiated his region’s operational pro-

grammes with the European Commission, sought

to share his experience which shows that macro-

economic conditionality does not work. Firstly, it

undermines the very principle of cohesion policy

which is to programme long-term investments.

The communication is casting doubt on regional

investments, and this runs completely counter to

the objectives set by this policy. Furthermore, hav-

ing taken part in the negotiations with the Euro-

pean Commission, Mr Soulage firmly believes that

renegotiating the programmes will be counterpro-

ductive, ineffective and a heavy burden on all levels

of administration.

Lastly, along with the COTER commission, he

considers that macroeconomic conditionality is

not the right answer to Europeans’ expectations:

it unacceptably sidelines the European Parlia-

ment’s democratic control and weakens economic

recovery and the investments which Europe sorely

needs. Macroeconomic conditionality is the wrong

response to the crisis: cutting public deficits has

never created growth, whereas investments lay the

groundwork for it.

The European Commission has proposed

best practices to reduce the social impact

of company restructuring. Specific meas-

ures include continuing mapping of jobs and skills

needs and measures for individual employees, such

as training, career counselling and assistance to

facilitate professional transition. It also includes

the involvement of external actors at an early stage,

such as public authorities, universities and supply

chain. Furthermore, it includes making full use

of EU Structural Funds like the European Social

Funds and the European Globalisation adjustment

Fund in relevant regions in order to promote job

creation and inclusive transitions in the period of

restructuring.

The Commission will monitor the application of

the Quality Framework, which is voluntary, and

will report by 2016 on whether further action is

necessary in this area, including a possible legis-

lative proposal. Mr Branda underlined that “the

Commission should cooperate with all interested

stakeholders when evaluating the Quality Frame-

work implementation.” “Local and regional au-

thorities can help facilitate the right balance being

achieved in the labour market between supply and

demand. They can do this through education and

training and making mobility easier” noted Mr

Branda. On education and training, Mr Branda

explained that “local and regional authorities often

provide education and training service and in turn,

can help ensure that the education and training

system matches the needs of the labour market.”

On the topic of mobility, Mr Brand explained

that “mobility can help balance supply and de-

mand. There is often a greater demand in certain

regions for specific type of skills depending. Dif-

ferent regions often specialise in different sectors

and different industries. As local and regional au-

thorities, we must try to reduce barriers to mobility

and facilitate the exchange of information on job

opportunities among ourselves. True cross-border

labour mobility is crucial for inclusive and sustain-

able growth and job creation.”

Macroeconomic conditionality

does not work

Bernard Soulage (FR/PES), Vice-President of the Rhône-Alpes region for Europe

Challenges created by a company restructuring

Pavel Branda (CZ/ECR), Deputy Mayor of Radlo

Pavel Branda, Deputy Mayor of Radlo in Czech Republic, is the Committee of the Regions rapporteur on “EU Quality Framework for anticipation

of change and restructuring”, which looks at the practices for anticipating company restructuring and minimising their impact on workers

and social conditions. Mr Branda underlined the importance of providing LRAs with the right resources to facilitate the transition of young

people from education into employment, given that local authorities in particular often have a role as service providers in education and training.

He also underlined the importance of cross-border labour mobility for jobs and growth.

RAPPORTEURS HAVE THEIR SAY

Page 25: magazine-CoR-n90-final-version

Nº 90 – JANUARY-FEBRUARY 2015

REGIONS AND CITIES OF EUROPE 23

Annabelle Jaeger: UN climate

deal in Lima – “another

missed opportunity”

The Committee of the Regions has welcomed the

international climate deal struck during the UN

talks in Peru. Annabelle Jaeger, member of the

Provence-Alpes-Côte d’Azur regional council and

representing the Committee within the EU’s del-

egation in Lima, warned however that, though it

was a step forward, a far greater level of ambition

was needed to stop temperatures rising by more

than 2°C when the major climate talks are held in

Paris next year. She also described the last minute

decision to delete the reference to local government

as “another missed opportunity”.

The five-page text agreed on 14 December 2014 –

known as the Lima Call for Climate Action – was

finally adopted by all negotiating parties during

the UN Conference (COP 20) and for the first

time commits rising economies and rich countries

to take action on climate change. On behalf of the

Committee – the EU’s assembly of local and re-

gional governments – Annabelle Jaeger had taken

part in a series of events and worked within the

EU delegation to shape an international agree-

ment ahead of the UN Paris climate change talks

in 2015. Commenting on the outcome, Ms Jaeger

said, “We are relieved that some form of agreement

was reached. It does pave the way for countries to

set out how they will contribute and an agreement

was reached on the very basic criteria that can be

deemed just about acceptable. Nevertheless, it

can’t be said that it has set the bar high in terms

of ambition in tackling climate change and it is not

nearly enough to stop temperatures rising above

the danger mark of 2°C”.

The potential lack of transparency of the contribu-

tions each country will make in tackling climate

change was also a cause for concern, “As an inter-

national community we must all share the burden,

but that requires transparency to allow compari-

sons to be made, to target those needing support

and to evaluate how far we have come. The UN-

FCCC will publish a report evaluating country

contributions just in time for the Paris talks – if

the report says the numbers do not add up it will

be near to impossible to persuade nations to up-

scale their contribution in time for an agreement

to be reached by the end of next year”, Ms Jaeger

remarked.

Ms Jaeger also expressed disappointment as the

two weeks of negotiations had watered down the

text removing references to the role of local gov-

ernments, “For cities and regions we began with

high hopes: the initial draft explicitly stated that

national governments must support us by offer-

ing the right regulatory framework and financial

investment. However, the final outcome has left

a bitter pill to swallow: after intense negotiations

the text was removed having been rejected by some

countries”.

The Committee, working alongside other organi-

sations such as Local Governments for Sustain-

ability (ICLEI), had hoped that local governments

would be formally recognised as “governmental

organisations”. Following the UN Conference

local governments will continue to be treated as

“observers”, “non-governmental stakeholders” and

now “experts”, which does not recognise their key

role in democratic policy making, implementation

of mitigation policies, risk reduction and resilience

building.

Final COTER meeting under

the chairmanship of Marek

Woźniak

Mr Woźniak was elected Commission for Terri-

torial Cohesion Policy’s chairman in September

2012. The commission is crucial from the point of

view of regional development. He served at a criti-

cal juncture - the planning and negotiation by the

European institutions of the EU budget for 2014-

2020 and the shaping of the future cohesion policy.

During the commission meeting, the chairman

thanked members for their fruitful contribution,

over a number of years, towards consolidating the

position of cohesion policy among other EU poli-

cies. It is thanks to the active steps taken by the

COTER Commission, and hence the entire Com-

mittee of the Regions, that the cohesion policy has

retained a key role as an investment tool in the new

programming period, supporting growth and jobs

in regions and cities and strengthening the posi-

tion of local and regional authorities in implement-

ing EU funds.

During the commission meeting, the chairman

summarised the active contribution of the CO-

TER Commission as a whole. He underlined that

during the past two and a half years, “the COTER

commission has produced 26 opinions on various

dossiers under its main remits: economic, social

and territorial cohesion, the Structural Funds,

urban policy, territorial cooperation and macro-

regions, and transport and trans-European trans-

port networks”.

Mr Woźniak has repeatedly set forth the position

of the European local and regional authorities on

this matter during inter-institutional negotiations

on the Structural Funds. He has produced two

crucial opinions on behalf of the Committee of the

Regions. In the first of these, on the common stra-

tegic framework (adopted in late 2012), he called,

among other things, for greater decentralisation

at regional and local level in the management of

funds. He also pointed out that the common stra-

tegic framework funds have a pivotal role to play

in implementing the Europe 2020 strategy and

investments to reduce differences in development

between Member States and regions, and within

individual regions. However, in the resolution on

the legislative package on Cohesion Policy post-

2013, Mr Woźniak strongly opposed the planned

funding cuts to this policy. He stressed that EU

funds boost competitiveness across the EU, not

least by eliminating territorial imbalances between

and within EU regions, especially in times of crisis.

Of all the Committee of the Regions’ commis-

sions, COTER enjoys the most effective coop-

eration with the European Parliament, especially

with MEPs sitting on the Committee on Regional

Development (REGI). The initiative of holding

annual joint meetings between the COTER Com-

mission and the REGI Committee has continued,

enabling views to be exchanged and consensus to

be built. In recent years, the joint meeting has been

chaired, on the CoR side, by Mr Woźniak and, for

the European Parliament, by Danuta Huebner,

and since 2014 by Iskra Mihaylowa from Bulgaria.

Mr Woźniak had also met with the new CoR

secretary-general, Jiří Buriánek, to discuss, among

BRIEF NEWS AND EVENTS

Annabelle Jaeger

Marek Woźniak

Page 26: magazine-CoR-n90-final-version

News from the EU’s assembly of regional and local representatives24

BRIEF NEWS AND EVENTS

other things, the preparations for the Committee

of the Regions’ new term-of-office, and the CoR’s

participation in the European regional forum to be

held in Krakow in April next year. The COTER

Commission will shortly draw up an opinion on

the regulation on the European Fund for Strategic

Investments (i.e. the central part of the “Juncker

plan”), which is expected to be published by the

European Commission in January.

Family Justice Centres

conference

The high-level conference organised by Family

Justice Centres in Europe in partnership with the

Committee of the Regions, its president Michel

Lebrun, the European Commission’s DG Justice

Unit “Gender Equality” and the Elisan network,

took place on 14 January at the Committee of the

Regions’ building in Brussels. The Family Justice

Centres, funded by the European Daphne III pro-

gramme, provide a combination of services and in-

terventions from a single location to help victims

and offenders break the cycle of violence and de-

velop healthy relationships.

This model has been identified as a best practice in

domestic violence intervention and prevention ser-

vices by the US Department of Justice and is being

implemented in a number of European cities such

as Warsaw, Berlin, Milan, Antwerp, Tilburg and

Venlo. “This is an effective and efficient family vio-

lence prevention project, bringing together a net-

work of public and private partnerships - a unique

experience in Italy”, said Siria Trezzi, Mayor of

Cinisello Balsamo in Italy. According to Sylvie

Carrega, Deputy Mayor of Marseille and President

of the Elisan network, “Access to help through inte-

grated responses in a single place is often the most

effective approach to tackling violence.”

Each year, law enforcement agencies around the

world respond to incidents of domestic violence.

What is most alarming is that only 25% of cases are

estimated to be reported. There are many reasons

why victims fail to report, including love, fear, re-

ligious beliefs, threats, lack of resources, or simply

not knowing that help is available. Most criminal

and civil justice systems make it difficult for vic-

tims to seek help and unintentionally wear them

down. Victims are often required to travel from

location to location to seek services and have to tell

their story over and over again.

EPP Winter University

Approximately 50 journalists and media experts

gathered in Brussels on 10-11 December for the

ninth edition of the EPP Group in the Commit-

tee of the Regions’ Winter University. Entitled

“Putting people back at the heart of EU media and

communication”, the meeting focused on creating

networks between the European institutions in

Brussels, EU member states, cities and local and re-

gional media. Under the slogan “Believe in People”,

the meeting followed on from the EPP pre-election

campaign and aimed to put people’s abilities and

aspirations at the centre of political storytelling.

Participants debated the communication aspects

of the European election campaign and the process

to appoint Jean-Claude Juncker as President of the

European Commission. Welcoming the develop-

ment, EPP President, Joseph Daul said “the po-

liticization of the European campaign through the

Spitzenkandidaten procedure helped. It gave a face

to the different policy options and helped make

the debate more interesting for citizens and the

media”. This point of view was shared by the group

of journalists, who were represented by Federico:

“This time it was different. You could see the dif-

ferent candidates and the human faces behind the

campaign.” Local and regional events, including the

Poznan Summit, were also welcomed for bringing

the campaign closer to citizens.

However, President Daul and the EPP Group in

the Committee of the Regions President, Michael

Schneider, agreed that having the best election

campaign is not enough. “Our main work must

concentrate on communicating about concrete Eu-

ropean issues that are closer to citizens and which

impact on their lives every day” he said. Lambert

Van Nistelrooij MEP, echoed this notion in a ses-

sion dedicated to best practices in communication,

putting his electoral success down to continuous

“image building”, which translated into trust. Pre-

senting the EPP Group in the European Parlia-

ment’s social media strategy, Lada Jurica said “We

have moved away from saying to showing”. This

shift was appreciated by participants who encour-

aged other EU institutions to learn from this ex-

ample.

The main conclusion of the event was that the EU

needs to translate its policies and activities into sto-

ries that can be accessible for citizens. As Luc Van

den Brande, the Vice-President of the Committee

of the Regions said “they want to see, feel and touch

the real added value of Europe at the local level.”

Several speakers highlighted that EU regional, re-

search and innovation policies contain wealth of

potential stories.

YFactor Conference

Cries of ‘What is happening to Europe?’ are begin-

ning to burst through all across Europe, as young

people from Porto to Poznan contemplate their

not so rosy-looking future. Some find themselves

without work, whilst others question why they

should even bother to vote, because they don’t feel

represented or simply feel disillusioned by a system,

which they may ultimately believe in, but which

they feel is unravelling towards self-destruction.

The Committee of the Regions aims to help unfurl

some of the key questions being raised by Europe’s

young people of Europe’s cities and regions and put

youth back at the centre of the debate. On 5 Feb-

ruary, young people, CoR members and EU deci-

sion makers from across Europe will congregate

at the Committee of the Regions for the YFactor

conference. Their goal will be to discuss the main

concerns of Europe’s youth and present proposals

to the new European Commission President, Jean-

Claude Juncker, thus putting youth firmly on the

EU agenda.

The participants will be divided into three main

thematic groups with additional input from youth

across Europe through social media channels. The

groups will discuss Youth [Un]employment, EU

Citizenship and Sustainable Growth and Devel-

opment. Panel discussions with MEPs, academia

and young leaders will prompt dialogue and World

Cafés will generate proposals, which will be vot-

ed upon in a General Assembly and will then be

Joseph Daul

Page 27: magazine-CoR-n90-final-version

Maja Biechowska (12 years), Gdynia, PolandI love my region, I love Gdynia, I love the sea. I hope that in the future my home

town will be more modern, but also green and unpolluted. We will gain power

from the sun and from the wind.

Markus Alliku (11 years), Illuka, EstoniaI would like to live in a very busy place, a big city in Estonia. My future is con-

nected with football. I do not want to change my homeland and the style of

life. I love sport, I love football and I like to be a famous football player in the

future.

presented to Tibor Navracsics, Europea Commis-

sioner for Education, Culture, Youth and Sport.

Young people want to be involved in a debate that

concerns them and co-create with decision mak-

ers representing their interests. YFactor aims to

get the ball rolling and set the record straight for

President Juncker’s new mandate.

Citizens’ Dialogue

in Santander

On 23 January, the Committee of the Regions, the

city of Santander and the FEMP (Spanish Federa-

tion of Municipalities and Provinces) held an event

entitled Citizens’ Dialogue – “Europe in my City”,

in Santander, Spain. The panel addressed a variety

of questions, such as: How can European policies

inf luence daily life at local level? How can we re-

connect citizens to the European project? What is

the role of local and regional authorities in boost-

ing local economic development through EU cohe-

sion policy and the new European investment plan?

How can we work to make the best use of the EUR

28.6 billion that the European Union will invest in

Spain under its Cohesion Policy?

The debate, which was open to members of the

public (students, local stakeholders, media), mem-

bers of local government, members of the FEMP

and of the Spanish Network of Smart Cities

(SNSC), was attended by the President of the CoR,

Michel Lebrun, the Mayor of Santander, President

of FEMP and member of the CoR, Iñigo de la

Serna, the Minister for Economic Affairs, Taxa-

tion and Employment of the Autonomous Com-

munity of Cantabria, and member of the CoR,

Cristina Mazas, and the Vice President of the

European Investment Bank (EIB), Román Escol-

ano. Representatives from different spheres were

invited to take the f loor and included the Spanish

Government’s Ministry of Economy and Competi-

tiveness, the Region of Cantabria, the European

Commission and the European Parliament. Mario

Campolargo, Director of DG Connect at the Eu-

ropean Commission led a panel focus discussion on

smart urban innovation, with contributions from:

Alfonso García Alonso, Mayor of Barakaldo, and

Francisco Javier León de la Riva, Mayor of Vallado-

lid and CoR member.

The debate was followed by two technical sessions,

which provided an opportunity to discuss EU pro-

jects for dynamic and smart urban innovation and

to present the 2014-2020 programming period of

the European Structural and Investment Funds

in Spain, looking at concrete and tangible ambi-

tions and results. Focus was also given to the new

Juncker plan for investment. This meeting follows

on from the European Commission’s adoption of

the Partnership Agreement with Spain in October

2014, concerning the Structural Funds and Euro-

pean investment for 2014-2020. This agreement

sets out the broad guidelines for the 2014-2020

programming period and establishes the intended

uses of the EUR 28.6 billion which the European

Union will be injecting into Spain’s economy.

“My Region, My Future” schools competition

The European Alliance group organised Primary Schools Art competition

brought out the creative side of young children across Europe in the last few

months of 2014. The theme of this competition was “My Region, My Fu-

ture”, and the children’s ages ranged from 6-12 years old. Each child was also

asked to describe their artwork. The full range of artworks can be seen on

www.ea.cor.europa.eu

Edita Kentošová (10 years), Vranov nad Toplou, SlovakiaI live in Vranov nad Toplou in Slovakia. I’m looking at my town from above and

I am happy that this is my home. I was born here, I have my parents, grandpar-

ents and friends here. I wouldn’t change it for anything!

Page 28: magazine-CoR-n90-final-version

www.facebook.com/committee.of.the.regions

@EU_CoR

The European Entrepreneurial Region Award 2016

The European Entrepreneurial Region (EER) Award is an initiative of the Committee of the Regions promoting the implementation of the Small

Business Act for Europe (SBA) at local and regional level. The EER scheme identifies and rewards EU regions which show an outstanding and

innovative entrepreneurial policy strategy, irrespective of their size, wealth and competences. The regions with the most credible, forward-thinking

and promising vision plan are granted the label “European Entrepreneurial Region” (EER) for a specific year. The EER label has been set up in

partnership with the European Commission and is supported by EU level stakeholders such as UEAPME, Eurochambres and Social Economy Europe.

Up to three territories will be awarded the EER Award label for the year 2016.

The deadline for the submission of applications is 16 March 2015.

More information: [email protected]

Regions & Cities of Europe is published by the Committee of the Regions, the EU institution representing local and regional authorities.

Subscription is free of charge. To subscribe, please send your name and address, by e-mail to [email protected] or by post to

the following address:

Committee of the Regions

Press Department — Subscription to Regions & Cities of Europe

Rue Belliard/Belliardstraat 99–101

1040 Bruxelles/Brussel

BELGIQUE/BELGIË

Would you like to receive Regions & Cities of Europe?

QG-A

A-15

-090

-EN-

C