Debate: The role of cohesion policy in tackling the socio-economic fallout from COVID-
Date: FRIDAY, 10 JULY 2020
Speaker: Elisa Ferreira
Language: EN

Today, these challenges are even greater. In this week’s economic forecast presented by the Commission, it is yet again clear that the economic impact of this crisis will be bigger than expected. The recovery next year will be weaker than initially foreseen. The downside risks are considerable. Divergence, asymmetry and fragmentation still hang over our Union.  It is a critical moment, then. Will we, collectively, find the political will and demonstrate the leadership to put an ambitious European recovery plan into action? Half of the work is done. The European Commission has put an unprecedented ambitious recovery package on the table. Most importantly, it has put cohesion and solidarity at the heart of its package. This House was crucial in reaching this point. Thank you to all of you.  The two resolutions, supported by a large majority of the political forces, have called for a bold proposal. There may still be issues to fine-tune, but this is part of the democratic process. The crucial thing is that institutional negotiations cannot linger. We must strike an agreement on both recovery instruments powered by the Next Generation EU under the Multiannual Financial Framework (MFF) 2021-2027 in full respect of the Community method.  We must understand that every day lost without action is a life, a job, a business lost without concrete support. As you correctly mentioned –  We were quick to act. We acted with the support of Parliament and of the Committee on Regional Development (REGI) and the Committee on Budgets (BUDG). The two Coronavirus Response Investment Initiatives enabled mobilisation of some EUR 50 billion of cohesion funds. This has allowed us to buy masks and ventilators, to keep people in jobs, to give cash-starved businesses a lifeline, and to give liquidity support to squeezed public budgets.  This was an emergency. However, more is now needed. Overall, the recovery package brings EUR 100 billion in addition to the cohesion funds. Half of this will come from REACT-EU: a EUR 55 billion instrument to provide immediate and flexible support in 2020, 2021 and 2022 for health, small and medium-sized enterprises, workers, and green and digital projects. It comes on top of the current and the next MFF and acts as a bridge between the two periods.  The other instrument, the Just Transition Fund, on which Parliament was also very active and vocal will now deliver some EUR 40 billion for those people and regions that will suffer the most from the transition to a carbon neutral economy. We also proposed a EUR 10 billion mid-term top-up in 2024 to capture the long-term effects of the crisis at regional level. In 2021-2027, cohesion policy should continue to deliver on its Treaty objectives to promote convergence and support the least-developed parts of the Union, and it will have the task of putting the European priorities in action on the ground in every region, ensuring a green and digital transition that leaves no one behind. However, it can only do that with a stable financial framework in place. Therefore, we need a decision at the European Council in the next few days and an agreement with Parliament right after. I will do my utmost to work with you, with the Member States, with regions, with civil society, to get an agreement on the several cohesion proposals on the table. We have to make sure that cohesion policy continues to deliver – now, tomorrow and in the long-term. For the sake of a resilient and fair recovery and for the sake of a stronger Union. Thank you. I look forward to the debate and our continued work.