The Recovery plan for Europe must take local and
regional authorities on board to be effective in
tackling the consequences of the crisis. A
centralised approach, with decisions taken t
op-down, risks to create overlaps or even
competition among funding tools. This could
undermine the impact of the new Recovery and
Resilience Facility. Members of the European
Committee of the Regions (CoR) shared these
concerns in a debate with EU Commissioner for
Economy, Paolo Gentiloni. Their views and their
improvement proposals fed into an opinion
adopted by the Plenary.
European regions and cities ask to modify the
regulations on the Recovery and Resilience Facility
(RRF) and on the European Semester to involve local and
regional authorities in the design of recovery plans.
The CoR proposes to back the partnership between
national and local authorities with a Code of conduct
that would increase the democratic legitimacy and the
effectiveness of the Semester. This will help
coordinate the unprecedented set of investment tools
that will be available soon, avoiding overlapping and
incoherence.
"There is no impact without partnership"
stressed the President of the CoR, Apostolos Tzitzikostas during the
debate with the EU Commissioner for Economy, Paolo Gentiloni, proposing to jointly
promote regions' and cities involvement and monitor the
RRF territorial impact with an annual recovery and
resilience regional forum.
"
The expertise of regions and cities is crucial for
EU's recovery strategy
", said Commissioner Gentiloni, adding that: "
Recovery plans can only be a success if national
governments work with regional and local
authorities. We are ready to cooperate in this
direction, including by participating in regional
fora as soon as this will be possible again
". As for investment priorities, he stressed that: "
Plans will not be written in Brussels but the
Commission will make sure they are coherent with
our common framework, making our economies more
sustainable and resilient, with a strong
contribution to the green and digital transition. I
am glad to see that this is fully in line with the
CoR demands on the RRF
".
Regional and local leaders' requests and proposals
are included into the opinion entitled
European recovery plan: Recovery and
Resilience Facility and Technical Support
Instrument
, adopted by the CoR Plenary.
"
We have a clear message for the European Commission
and the Member States: the Recovery Plan will not
fly without involving cities and regions in both
the preparation and the implementation of the
national plans. At the same time, the urgently
needed recovery measures to resist the economic and
social tsunami ahead of us should not go at the
expense of longer term sustainable investment. We
therefore oppose transferring resources from the
structural funds to the Recovery Plan. And finally:
the lessons of the COVID-19 have also to be
translated into a profound reform of the European
economic governance, which must become more
democratic, more participative and sustainable
",
stated the rapporteur-general Christophe Rouillon
(FR/PES), Chair of the CoR Socialist Group and
Mayor of Coulaines.
Local and regional authorities are responsible for a
third of public expenditure (33.6%) and for 53% of
public investment in the EU (
2018 figures, OECD
). They have enormous responsibilities and competences
in policy fields that are crucial for the recovery and
the green and digital transitions, from transport or
support to businesses, to environment, education or
housing.
Cities and regions' finances have been badly impacted
by the COVID-19 pandemic. In a survey conducted by the
CoR and OECD, included into the
first Annual Regional and Local Barometer
, 76% of respondents said the lack of financial
resources was very or somewhat challenging in managing
the crisis. On the whole, 85% of respondents expected a
high or moderate negative impact on their local and
regional finances in the medium term (2021-22). The
pandemic "scissors effect" – with increased costs for
public services and falling revenues from taxes and
fees - is a ticking bomb for local finance.
The CoR and the Commission are discussing the
organization a joint EU "Recovery and Resilience Forum"
in one year, to take stock of the RRF, its impact on
the ground, its contribution to the achievement of the
green and digital transitions and to cohesion. This
will also build on the CoR's work, together with
associations of local and regional authorities, to
assess the involvement of cities and regions in the
preparation of the national recovery and resilience
plans, and the RRF more broadly.
Background:
The
Recovery and Resilience Facility
(RRF) is the EUR 672.5 billion instrument (EUR 312.5
billion in grants and EUR 360 billion in loans)
designed to support EU countries in carrying out
reforms and investing in the EU's common priorities.
The RRF is the biggest financial tool included in the
EUR 750 billion recovery instrument Next Generation EU,
known also as
Recovery plan for Europe
.
Contact:
Matteo Miglietta
Tel. +32 (0)2 282 2440
Mobile: +32 (0)470 895382
matteo.miglietta@cor.europa.eu