Debate: Reversing demographic trends in EU regions using cohesion policy instruments
Date: MONDAY, 17 MAY 2021
Speaker: Nicolas Schmit
Language: EN

The success of our policies should be measured by whether we can improve economic development and the quality of life in all territories. There are wide variations in demographic trends in Europe between, and within, Member States. Some regions will face sharp population decline, while others will experience steady population growth. To identify the various demographic trends in EU territories, the Commission produced a report on the impact of demographic change in Europe last June and recently launched the Atlas of Demography. Splitting regions into sending and receiving regions, brain drain versus brain gain, is a bit simplistic. It suggests that every movement inevitably produces winners and losers in a Union where movement is one of the main four freedoms, and we had the opportunity to discuss already this important issue. Brain circulation through moves from one place to another can produce both individual and collective benefits. People take the experiences, the education and often their partner with them when they move to a new region or to the region they grew up in. Movement within the EU is not a one-way street. The circulation allows all regions to benefit. In the EU, more people move to rural regions than move out. This shows that on average, rural regions are attractive places to live in, which also benefit from the experience, the income and connections of the people moving in. One-size-fits-all approaches will not work. Regional responses to demographic change must include multiple interventions and integrated approaches. Both rapid growth and rapid decline should lead to adjustments of public services and infrastructure to the needs. A word on cohesion policy instruments to tackle demographic challenges. This Commission is the first one with a portfolio explicitly dedicated to demography. It is already working on demographic change, including aging, and on developing a long-term vision, especially for rural areas, and this long-term vision aims at creating a new momentum specially for rural areas. The competences for relevant policies to deal with the demographic change are to a large extent in the hands of Member States. However, the EU, and cohesion policy in particular, provide key financial levers for structural reforms and support national, regional and local policy-makers in their search for policies dealing with these changes. Cohesion policy already includes multiple provisions to address demographic change. Under the 2014-2020 framework, the specific needs of geographical areas which suffer from severe and permanent natural or demographic handicaps have been given special attention, and measures identified by Member States in cohesion programmes show varieties of responses to demographic challenges. They include measures for boosting connectivity and digitalisation, economic development, reinforcing sustainability by adjusting measures to population shifts, as well as essential infrastructure and services such as childcare facilities, health care and long-term care. Together with the valuable experience of other EU initiatives and structural reforms, rural development, research and innovation or education and training, they can provide inspiration and valuable lessons in order to make best use of all the resources available to support the socio-economic development of depopulated areas. Cohesion policy in 2021-2027 will continue to invest, to tackle demographic challenges and aging in a place-based approach adjusted to the actual needs of territories; to support investments addressing causes and consequences of demographic change under all policy objectives: more competitive and smarter Europe through innovation and digitisation; green and low-carbon Europe – we had the discussion on the Transition Fund; more connected Europe, connectivity and accessibility; more social and inclusive Europe through social infrastructure and services; and finally, a Europe closer to citizens, integrating territorial approaches and local initiatives. Cohesion policy also provides a flexible and adaptable framework to address demographic challenges in a targeted and coordinated manner, while ensuring the participation of territorial authorities and local stakeholders. Smart specialisation strategies help local partners identify regional assets and develop them in a cooperative process. Moreover, a dedicated policy objective and instruments to integrate territorial and local development will be available to support local actors and exploit new opportunities, developing links between rural areas and cities, economic diversification of rural areas through the common agricultural policy – access to services, including digital services, is of crucial importance to assist regions to become more innovative and competitive and improve the quality of life for citizens and especially keep these citizens in the territories, which is the major aim. Negative population trends are often accelerated as a result of the decline of certain sectors, again coming back to the Just Transition Fund. Here we have really to use this tool to prevent that the decline of certain sectors goes together with the decline of population, causing regions to become a less attractive place to live and work. So this is what we have to do to give new opportunities to this region. Therefore the Just Transition mechanism is so important. Cohesion policy can support investment in all these areas. Technical support through the Technical Support Instrument can complement cohesion policy to increase labour market participation of the long-term unemployed youth, older people or migrant integration in the labour market. The Commission can provide technical support to Member States that wish to undertake reforms in all these areas. When developing their partnership agreement and programmes, affected Member States need to identify their demographic challenges and specific needs of regions and areas – in particular, disadvantaged areas – and set out an integrated approach to address them, depending on the resources and other policy measures. Member States will even have the possibility to earmark dedicated funding. As a result, causes and consequences of demographic change can be specifically addressed. It is now the responsibility of each Member State to propose a set of measures to tackle the challenges of depopulated areas during the negotiations of future cohesion policy programmes that are currently taking place in order to make best use of all the resources available to support the socio-economic development of all areas, and particularly of depopulated areas.