Debate: Forging a sustainable future together: economic, social and territorial challenges for a competitive, cohesive and inclusive Europe
Date: WEDNESDAY, 24 APRIL 2024
Speaker: Mairead McGuinness
Language: EN

The 9th Cohesion Report, published earlier this month, really does paint a very positive and rich picture of economic, social and territorial cohesion across the European Union. There is remarkable convergence over recent years. The countries that joined the EU in 2004 – as we celebrated earlier today – have seen their GDP per head increase from 52% of the EU average to nearly 80% as of last year. This is, in large part, thanks to EU cohesion policy. Evaluation of the 2014-2020 programme shows that, by 2022, the policy had supported 4.4 million businesses, created 370 000 new jobs, protected 17 million people from floods and improved health services for 63 million people. The benefits extend beyond direct investments. Enrico Letta’s new report, ‘Much more than a market’, shows how cohesion policy has always been a key success factor for the single market. For every EUR 1 invested in cohesion policy, EU GDP increases by nearly EUR 3 in the long term. Cohesion policy is one of the key pillars of the European project, accompanying each step of the integration process – from the creation of the single market to successive enlargements, supporting the achievement of the European Union’s priorities. Market forces alone cannot ensure that the benefits from these key integration steps are evenly spread across Europe, and that’s why cohesion policy is vital – so that every Member State and region can contribute, benefit and reach its full potential. Cohesion policy also acted as a key stabiliser in recent crises. After the COVID-19 pandemic, the economy rebounded much more quickly than in the financial crisis thanks to the European response, where cohesion was a core part. Cohesion helped in welcoming refugees fleeing Russia’s illegal invasion of Ukraine and in protecting the most vulnerable from subsequent energy price hikes. These and many other benefits are known to Parliament, and were well reflected in your opinions and reports during this legislative term. They are also reflected in discussions over the past year on the future of cohesion policy. But, of course, in the 9th Cohesion Report and stakeholder discussions, there are also revelations around new challenges that the future policy will need to address. First, convergence at national level is not always reflected at regional level. Urban centres thrive while other regions decline. Rural, mountainous, island and sparsely populated regions face particular challenges, and some regions have fallen into development traps. Regions facing persistent stagnation struggle to get back on a growth path, risking the creation of a geography of political discontent. Second, Europe is facing particular social and demographic challenges. Regions where opportunities are scarce experience brain drain, which exacerbates long-term trends, like an ageing population and challenges in providing public services. And third are the impacts of climate. Some regions are particularly exposed – not just those at risk from fires, floods and droughts, but also those most dependent on carbon-intensive activities. It is essential that cohesion policy evolves to face these challenges and other challenges that may emerge, including in the context of future enlargement. The debate on the future of cohesion policy has started – with Parliament, with Member States, with regions and local stakeholders, with citizens. Together, we should build on the success of Europe’s convergence story and learn lessons from our collective experience to continue modernising and strengthening cohesion policy. So I look forward to your insights during tonight’s debate.