The EU economic governance review must tackle the lack of involvement of cities and regions
Declarations of the President of the European Committee of the Regions (CoR), Vasco Alves Cordeiro, and the CoR rapporteur on the European economic governance review, Elio Di Rupo, on the proposal for a reformed EU economic governance framework put forward today by the European Commission.
The President of the CoR and Member of the Parliament of the Autonomous
Region of the Azores,
Vasco Alves Cordeiro
, stated: "
The European Committee of the Regions expects today's European
Commission's proposal to lead to a genuine change of direction
regarding the EU economic governance framework: there has never been a
stronger need for public investment in cohesion and sustainability. In
the troubled times we live in, it is more essential than ever to
exclude EU Structural and Investment Funds co-financing from EU fiscal
rules. We also expect the review of EU economic governance to address
the lack of involvement of local and regional authorities in the
European semester by means of a code of conduct, which would greatly
improve regional ownership and give EU economic governance greater
Elio Di Rupo
(BE/PES), Minister-President of Wallonia, CoR
on the European economic governance review and former Prime Minister of
Belgium, said: "
The Commission's outline of the fiscal reform focuses too much on debt
reduction and leaves aside the need for investment in projects helping
a transition to an environmentally, economically and socially
sustainable society. A difference between expenditures and investments
must be made. Public authorities at all levels need further flexibility
to undertake investments, if the EU should reach its goal of boosting
the economy. Historical times need extraordinary measures. The time of
the lowest common denominator must be over now
The European Commission adopted today a
setting out orientations for a reformed EU economic governance framework,
which aims at strengthening debt sustainability and enhance sustainable and
inclusive growth through investment and reforms in Europe, while bringing
Local and regional authorities
for one third of total public expenditure and more than a half of public
investment in the EU.
Between October 2020 and April 2022, the CoR
on the European governance review drafted by Elio Di Rupo. Local and
regional leaders reiterated the request for a "golden co-financing rule"
that would exempt co-financing of the
Structural and Investment Funds
by the Members States and regions from the debt and deficit rules of the
Stability and Growth Pact
(SGP) SGP – activated in March 2020 for the first time in the history of
the euro area.
The CoR also underlined the major flaws of the current European economic
governance, such as the lack of transparency and democratic legitimacy, and
said that it is imperative to avoid new austerity policies in the aftermath
of the COVID-19 crisis and the war in Ukraine.