Opinion of the Committee of the Regions on the Communication from the Commission The Growth and Jobs Strategy and the Reform of European cohesion policy Fourth progress report on cohesion
Date: 2006-12-06
Institutions: European Committee of the Regions
Subjects: EU regional policy, economic and social cohesion, economic growth, employment policy, regional cooperation, structural policy

10.3.2007

EN

Official Journal of the European Union

C 57/27

Opinion of the Committee of the Regions on the Communication from the Commission The
Growth and Jobs Strategy and the Reform of European cohesion policy Fourth progress report on
cohesion

(2007/C 57/06)

THE COMMITTEE OF THE REGIONS,

HAVING REGARD TO the Communication of the European Commission — Fourth progress report on cohe-
sion — The Growth and Jobs Strategy and the Reform of the European cohesion policy — COM(2006) 281, SEC
(2006) 726;

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 23 June 2006 to instruct its Commission for Terri-
torial Cohesion Policy to draw up an opinion on this subject;

HAVING REGARD TO its opinion on the Third Report on Economic and Social Cohesion (CdR 120/2004 fin);

HAVING REGARD TO the Conclusions of the informal Council of Ministers meeting on sustainable
communities. Bristol, 6-7 December 2005;

HAVING REGARD TO its Opinion on the Communication from the Commission to the Council and the Euro-
pean Parliament: Building our Common Future: Policy Challenges and Budgetary Means of the Enlarged Union 2007-
2013 — COM(2004) 101 final (CdR 162/2004 fin) (1);

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 COM(2004) 492 final
— 2004/0163 (AVC) (CdR 232/2004 fin) (2);

HAVING REGARD TO its Opinion on the Communication from the Commission Cohesion Policy in Support of
Growth and Job Community Strategic Guidelines, 2007-2013 COM(2005) 299 final (CdR 40/2005 fin);

HAVING REGARD TO its Opinion on the Communication from the Commission Third progress report on cohe-
sion: Towards a new partnership for growth, jobs and cohesion COM(2005) 192 final (CdR 141/2005 fin);

HAVING REGARD TO its draft opinion (CdR 249/2006) adopted on 19 October 2006 … by its Commis-
sion for Territorial Cohesion Policy (rapporteur: Mr William John Williams (UEN-EA/UK), (Member of
Isle of Anglesey County Council);

WHEREAS regional policy is the reduction of regional disparities, as stated in Article 158 of the Treaty;

adopted the following opinion at its 67th plenary session, held on 6-7 December 2006 (meeting of
6 December):

1. Economic and social disparities in the enlarged EU

The Committee of the Regions

of public investment throughout periods of economic downturn
in the Member States. In addition, EU funding provides a stable
planning process, an external stimulus and leverage effects
which are essential to sustainable regional development;

1.1
notes that whilst growth rates have been slower across
the EU during 2005, the presence of Convergence Programmes
has been beneficial to those regions concerned in terms of
leverage and additionality;

1.4 welcomes the fact that the final regulations allow for
private funding to co finance Structural Fund expenditure in
order to avoid greater pressure on regional and local budgets.

1.2 welcomes, therefore, the Communication's finding that
the present level of disparities in the EU makes clear the need
for a pan EU regional policy that promotes growth and reduces
disparities across the European Union;

2. Recent developments in EU Cohesion Policy

1.3
stresses that Cohesion Policy plays a key role in all EU
regions, given the importance that EU multi annual program-
ming of the Structural Funds has in maintaining planned levels

The Committee of the Regions

(1) OJ C 164 of 5.7.2005, p. 4.
(2) OJ C 231 of 20.9.2005, p. 1.

2.1 welcomes the European Commission's performance in
terms of Budget Execution in 2005;

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Official Journal of the European Union

10.3.2007

supports the more strategic approach being taken by the
2.2
European Commission through the Community Strategic Guide-
lines;

2.3
underlines that the National Strategic Reference Frame-
work (NSRF) and the elaboration of Operation Programmes
should be guided by the partnership approach as defined in the
General regulation on Structural Funds. The principle of part-
nership is essential for the efficiency and success of Cohesion
Policy;

2.4
reiterates the importance of both regional and local
levels being associated in the elaboration of the National Stra-
tegic Reference Frameworks and Operational Programmes. This
process should be guided by the good principles of ‘multi-level
involving local and regional
governance’ of Cohesion Policy,
authorities as well as economic and social actors;

2.5
believes that in order to tackle significant variations in
growth rates between regions, the new ‘Territorial Cooperation’
Objective merits greater reference in the Report, given the
added value that exchanging best practice between performing
regions and those with lower growth rates can have for EU
Cohesion Policy as a whole;

remains concerned that the target of 24 million new
2.6
jobs needed for the EU to hit the 70 % Lisbon employment rate
by 2010 will be unachievable unless Member States make signif-
icant efforts to achieve job related growth;

acknowledges the need for Cohesion Policy to deliver
2.7
increases in growth and employment through the ‘Earmarking
Process’. The Cur welcomes the final inclusive list which will
allow a wider range of basic actions like transport, telecoms,
social inclusion relevant to local and regional authorities whose
primary concern is to reduce regional disparities;

2.8
notes that the earmarking process will entail substantial
changes for all regions across the EU-15 where earmarking is
obligatory. The earmarking process must therefore take into
the particular needs and situations arising in EU
account
regions;

2.9
considers that Growth and Jobs strategies supported by
the Structural Funds clearly need to be designed with greater
from local and regional authorities. The successful
input

Brussels, 6 December 2006.

preparation of National Reform Programmes and the new
generation of Cohesion Policy programmes for 2007-2013
strongly depends on the quality of coordination between
Member States and the local and regional level;

underlines the policy set out in the Lisbon Annual
2.10
Progress Report (APR) to develop stronger and systematic coor-
dination mechanisms between those
the
National Reform Programmes and those preparing the Cohesion
Policy programmes 2007-2013;

responsible

for

2.11
underlines the important contribution that local and
regional authorities can make to the Lisbon process through
their education and skills agendas given the importance of
increasing skill levels as part of economic development;

2.12
is conscious of the benefits that the alignment of EU
regional funding with domestic funds can have in terms of
leverage and efficiency, but urges the European Commission to
be vigilant, notwithstanding the new definition of additionality,
to ensure that Structural Funds remain clearly visible at local
and regional level;

the

initiative

taken by

2.13 welcomes
the European
Commission in conjunction with the EIB in favour of innova-
tion and sustainability in regional policy including more innova-
tive forms of
financial engineering in the regions such as
JESSICA (Joint European Support for Sustainable Investment in
City Areas) and JEREMIE (support for Sees in the area of finan-
cial engineering);

2.14
urges that local and regional authorities, together with
the European Commission identify and target needs for addi-
tional capacity building at the local and regional
level taking
account of progress made in previous programmes;

underlines the essential

interrelationship that exists
2.15
between urban and rural areas across the European Union and
is concerned by the continuing lack of synergy and demarcation
between the emerging Structural, Rural Development and Fish-
eries programmes for the 2007-13 period;

2.16
looks forward, as the representative body of local and
regional governments, to a productive dialogue with the Euro-
pean Commission on the Fourth Cohesion Report, expected in
spring 2007.

The President

of the Committee of the Regions

Michel DELEBARRE