Opinion of the Committee of the Regions on the Communication from the Commission Third progress report on cohesion: Towards a new partnership for growth, jobs and cohesion
Date: 2005-10-12
Institutions: European Committee of the Regions
Subjects: European social policy, Structural Funds, economic and social cohesion, economic disparity, financing of the EU budget, principle of additionality, regional disparity, report

4.4.2006

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Official Journal of the European Union

C 81/11

Opinion of the Committee of the Regions on the Communication from the Commission Third
progress report on cohesion: Towards a new partnership for growth, jobs and cohesion

(2006/C 81/03)

THE COMMITTEE OF THE REGIONS,

Having regard to the Communication of the European Commission — Third progress report on cohesion:
Towards a new partnership for growth, jobs and cohesion, adopted on 17 May 2005 COM(2005) 192 final,
{SEC(2005)632};

Having regard to the decision of the European Commission of 17 May 2005, to consult it on this subject,
under the first paragraph of Article 265 of the Treaty establishing the European Community;

Having regard to the decision of its President of 19 May 2005 to instruct its Commission for Territorial
Cohesion Policy to draw up an opinion on this subject;

Having regard to the Third report on economic and social cohesion — A new partnership for cohesion, conver-
gence, competitiveness and cooperation — COM(2004) 107 final, adopted by the European Commission on 18
February 2004;

Having regard to its opinion on the Third Report on Economic and Social Cohesion (CdR 120/2004 fin) (1);

Having regard to its opinion on the financial perspective: Communication from the Commission to the
Council and the European Parliament: Building Our Common Future: Policy Challenges and Budgetary Means of
the Enlarged Union 2007-2013 (CdR 162/2004 fin) (2);

Having regard to its opinion on the Proposal for a Regulation of the European Parliament and of the
Council on the European Regional Development Fund (ERDF) (CdR 233/2004 fin) (3);

Having regard to its opinion on the Proposal for a Regulation of the European Parliament and of the
Council on the Cohesion Fund (CdR 234/2004 fin) (4);

Having regard to its opinion on the Proposal for a Regulation of the European Parliament and of the
Council on the European Social Fund (CdR 240/2004 fin) (5);

Having regard to its opinion on the Proposal for a Council Regulation laying down general provisions on
the European Regional Development Fund, the European Social Fund and the Cohesion Fund (CdR 232/2004
fin) (6);

Having regard to its draft opinion (CdR 141/2005 rev. 1) adopted on 24 June 2005 by its Commission
for Territorial Cohesion Policy (rapporteur: Mr Michael Schneider, State Secretary, representative of
Saxony-Anhalt to the Federal Government (DE/EPP);

adopted the following opinion at its 61st plenary session, held on 12/13 October 2005 (meeting of
12 October):

The views of the Committee of the Regions

I. Continuing economic and social disparities in the enlarged Union

The Committee of the Regions

notes that the regional disparities in the enlarged Union
2.
remain great and that the regional GDP in the ten most pros-
perous regions was 153 % of that in the ten least prosperous
ones;

3.
notes that a total of 64 regions in the enlarged Union
currently have a GDP below 75 % of the Community average
and this affects 90 % of the population of the new Member
States;

1.
considers the third progress report on cohesion to be an
important document in taking forward the debate on the future
organisation of cohesion policy in Europe;

renews, therefore, its call to give these regions in particu-

4.
lar support from the EU's structural policy funds;

(1) OJ C 318 of 22.12.2004, p. 1.
(2) OJ C 164 of 5.7.2005, p. 4.
(3) OJ C 231 of 20.9.2005, p. 19.
(4) OJ C 231 of 20.9.2005, p. 35.
(5) OJ C 164 of 5.7.2005, p. 48.
(6) OJ C 231 of 20.9.2005, p. 1.

points out that 3.5 % of

5.
the EU population live in
regions affected by the so-called statistical effect and reiterates
its call for a common and appropriate solution to be found for
these regions, in line with the convergence objectives set out in
the Third Report on Economic and Social Cohesion;

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Official Journal of the European Union

4.4.2006

6.
notes that a further 4 % of the EU population live in
areas whose good economic progress has taken them over the
75 % threshold and supports the call of these regions for an
adequate period of transition to the new competition objective;

7.
endorses the finding of the progress report that, despite
substantial productivity gains in recent years, a higher and
more measured increase in both productivity and employment
is needed to achieve convergence;

is concerned that regional disparities in some Member
8.
States have increased and in the light of this calls for greater
efforts at both European and national levels; stresses simulta-
neously that disparities have been falling across the EU since
1995. This fall has been more rapid between countries than
between regions;

9.
highlights the report's finding that many new Member
States will need sustained high growth for generations to come
in order to reduce disparities;

10. welcomes,
the
present level of disparities in the EU makes the need for an
active cohesion policy more than clear;

finding that

the report's

therefore,

11.
points out, in this connection, that assistance to regions
in a particularly difficult socio-economic situation must also
include help for them to make the structural change to a
knowledge-based society;

12.
highlights the Commission's view that an active cohe-
sion policy should not be limited to the least prosperous
regions if growth and employment are to be promoted;

13. wishes to express the need to implement the cohesion
policy in regions suffering from natural structural handicaps
such as islands and mountainous or sparsely-populated areas.

procedures
programmes;

for

redirecting and adapting structural

fund

reiterates,

its criticism of

in this connection,

17.
the
Commission's present proposals for revising the procedure for
allocating the performance reserve and its distribution in 2011
to the Member States by the Council. The Committee of the
Regions considers that it should be the Member States, working
closely with the Commission, that evaluate the performance
mid-way through the programme and allocate commitment
appropriations to operating programmes and to the priorities
that they deem to be the most efficient;

18.
agrees with the Commission that the structural funds
got off to a good start in the new Member States and reiterates
the Committee's interest
in keeping to the 4 % absorption
ceiling for using structural funds in the Member States;

notes that only nine of the thirteen Member States
19.
falling at least partially under Objective 1 have respected the
additionality principle and in the light of this points out that
when deciding if additionality is being observed under Article
11 of the Regulation laying down general provisions on the
Structural Funds, (7)
the following must all be taken into
account:
the relevant general economic conditions, specific
economic conditions, privatisations and any exceptionally high
level of public structural expenditure in the preceding period. It
must be also stressed that the Structural Funds are having a
significant leverage effect in urban and rural areas,
in main-
taining high levels of public investment compatible with their
efforts to ensure sound public finances;

20.
reiterates, therefore, its call to continue to allow private
funding to be used together with structural fund expenditure to
avoid even greater pressure on regional and local budgets,
while keeping a high level of public investment at the regional
and local level.

II. The EU's cohesion policy and the Lisbon Agenda

III. The future of the cohesion policy and the agenda for growth and

employment

The Committee of the Regions

The Committee of the Regions

14. welcomes the report's finding that more than half the
measures in many programmes implement the Lisbon Agenda
specifically;

21.
notes that its views on the future organisation of struc-
tural policy are in the main supported by the European Parlia-
ment and the European Economic and Social Committee;

stresses the importance of

the planning process in
15.
developing regional aid hot spots and innovation strategies and
calls for help to local and regional authorities as they admin-
ister and implement structural fund assistance;

stresses the need to mobilise local and regional players
22.
for the future implementation of
the structural policy and
reiterates its interest in continuing to play an active part, by
holding joint events and conferences,
in the debate on
economic, social and regional cohesion;

16. welcomes the increased use of structural funds, imple-
mented in many mid-term evaluations, to promote growth and
jobs; but at the same time stresses the need to simplify the

(7) Council Regulation (EC) No. 1260/1999 of 21 June 1999 laying
down general provisions on the Structural Funds, OJ L 161 of
20.6.1999, p. 1.

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23.
after the issues of the European Summit on 16-17 June,
is concerned that Member States still hold widely differing
views on the future financing of the European Union and is
especially concerned that delayed agreement will jeopardise a
smooth start to the next funding period, and lead to financial
instability across the local and regional authorities of the EU.
The current crisis will also have negative economic effects,
above all in the new Member States;

calls on the Member States, therefore, to decide quickly

24.
on the future financing of the European Union;

25. warns against losing sight of the cohesion policy goals
at a time when state assistance is generally falling, and reiterates
its interest in a balanced and adequate aid policy in the Euro-
pean Union which takes account of the conclusions of the
Stockholm European Council, held on 23 and 24 March 2001;

26. welcomes the prompt presentation of
the strategic
and
guidelines
announces that the Committee will react to this in a separate
report.

for planning the new aid programmes

Brussels, 12 October 2005

The President

of the Committee of the Regions

Peter STRAUB

Opinion of the Committee of the Regions on the Integrated Guidelines for Growth and Jobs
(2005-2008) Communication from the President, in agreement with vice-President Verheugen and
Commissioners Almunia and Spidla including a Commission recommendation on the broad guide-
lines for the economic policies of the Member States and the Community (under Article 99 of the
EC Treaty) and a Proposal for a Council Decision on guidelines for the employment policies of the
Member States (under Article 128 of the EC Treaty)

THE COMMITTEE OF THE REGIONS,

(2006/C 81/04)

Having regard to the Integrated guidelines for growth and jobs (2005-2008), including a Commission
recommendation on the broad guidelines for the economic policies of the Member States and the Com-
munity (under Article 99 of the EC Treaty) and a Proposal for a Council Decision on guidelines for the
employment policies of the Member States COM(2005) 141 final — 2005/0057 (CNS);

Having regard to the decision of the European Commission of 12 April 2005 and of the Council of 22
April 2005 to consult it on this subject, under the first paragraph of art. 265 and 128 of the Treaty estab-
lishing the European Community;

Having regard to its President's decision of 19 May 2005 to instruct the Commission for Economic and
Social Policy to draw up an opinion on this subject;

Having regard to the Resolution of the Committee of the Regions on revitalising the Lisbon strategy
adopted on 24 February 2005;

Having regard to its draft opinion (CdR 147/2005 rev. 1) adopted on 29 June 2005 by its Commission
for Economic and Social Policy (Rapporteur: Mrs Pauliina Haijanen, Member of the Board, Regional
Council of Southwest Finland, and member of Laitila Town Council (FI-EPP);

unanimously adopted the following opinion at its 61st plenary session, held on 12 and 13 October
2005 (meeting of 12 October):