The lack of involvement of local and regional administration raised concerns among regions and cities about the effectiveness of the post-pandemic Recovery and Resilience Facility and its capacity to promote cohesion in Europe. The assessment was included in a draft opinion on the mid-term evaluation of the Facility, adopted by unanimity during the meeting of the Commission for Economic Policy (ECON) on 4 July.
The Recovery and Resilience Facility (RRF), which is worth nearly €650 billion, is the cornerstone of the European post-pandemic recovery plan. In a draft opinion adopted by unanimity during the meeting (rapporteur Christophe Rouillon, FR/PES), local and regional leaders acknowledged the crucial role of the RRF in limiting the impact of the crisis caused by COVID-19. However, they expressed strong concerns about the centralised management of the instrument, which does not structurally involve local and regional administrations. Even though it has the same legal basis as Cohesion Policy (article 175 TFEU), ECON members underlined that the lack of territorial dimension in the RRF runs counter to the aim of cohesion in Europe and risks increasing disparities among regions.
Moreover, local and regional leaders suggested postponing the deadline for the Recovery and Resilience Facility, which will run until 2026 as currently only 37% of funds were used. The draft opinion is built on the mid-term evaluation of the RRF, published earlier this year by the European Commission and is scheduled for final adoption at the plenary of the European Committee of the Regions (CoR) in October.
Shock-proofing European regions
The EU has faced significant disruptions in its Single Market and regional competitiveness due to crises such as the COVID-19 pandemic and Russia's aggression against Ukraine. To address this, ECON members further adopted a draft opinion (rapporteur Ilpo Heltimoinen, FI/ECR) urging the European Commission to integrate resilience into its policy tools, focusing on economic, social, geopolitical, green and digital aspects. They highlighted that improved access to regional economic data is essential for informed decision-making and policy planning. Supporting small and medium-sized enterprises by reducing regulatory burdens and adopting an integrated approach with existing funding instruments is needed to enhance regional resilience and diversification.
Local and regional leaders further stressed that investing in secure regional value chains, infrastructure, affordable and secure energy production, and digital infrastructure is crucial for economic stability. Moreover, regulatory processes should be simplified while providing regionally targeted state aid during crises to mitigate economic shocks, ECON members demanded.
The draft opinion is scheduled to be adopted during the October CoR plenary session.
Quotes
Christophe Rouillon (FR/PES), mayor of Coulaines and rapporteur on the 'Mid-term review of the post-COVID European recovery plan': “The Recovery and Resilience Facility had to quickly react to offer financial support in times of crisis, but the missing involvement of the local and regional level showed its weaknesses in terms of a recentralisation of European policies. We cannot accept that future investments in new priorities such as defense are financed at the expense of Cohesion Policy for territories. New priorities need new finances."
Ilpo Heltimoinen (FI/ECR), Lappeenranta City councillor and rapporteur on 'Shock-proofing European regions': “While it is positive that the European Commission has recently focused on enhancing the economic competitiveness of the EU, economic resilience should also be high on the agenda of the next legislative mandate. Accordingly, we need to foster the diversification of regional economies and secure regional value chains, while paying particular attention to regional specificities, such as the external border regions."
Also during the meeting
ECON members elected Dainis Turlais (LV/Renew Europe), former mayor of Riga and now member of the city council, as their new chair. Mr Turlais replaces Jaroslava Jermanová (CZ/Renew Europe), who was recently elected to the European Parliament. Mr Turlais will chair the ECON commission until January 2025, when the CoR's current five-year mandate ends.
ECON members further held first debates on the following draft opinions:
- 'Proposal for a regulation on the screening of foreign investments in the Union' by rapporteur Michael Murphy (IE/EPP), member of Tipperary County Council.
- 'A strong European defence industry' drafted by Fernando Lopez Miras (ES/EPP), President of Murcia region
- 'The future of the Single Market and the EU's competitiveness' by rapporteur Martijn van Gruijthuijsen (NL/Renew Europe), delegate for Economy, Knowledge and Talent Development for the province of North Brabant.
- 'Supporting SMEs in regional value chains – fostering the proximity economy' drafted by Barbara Hegedus (HU/ECR), deputy mayor of Veszprém.
More information
- In April, the CoR and the Council of European Municipalities and Regions published the results of a survey conducted among regional and local associations. The consultation showed that the territorial allocation of funds from the RRF is widely perceived as unbalanced and therefore could harm cohesion in Europe. Press release
- Amendments to the opinion 'Mid-term review of the post-COVID European recovery plan'.
Contact:
Matteo Miglietta
Tel. +32 470895382
[email protected]
Theresa Sostmann
Tel. +32 475999415
[email protected]