Investment for jobs and growth: promoting development and good governance in EU regions and cities

The crisis has had a major impact on regions and cities across the EU. Regional economic disparities which were narrowing have stopped doing so, while unemployment has risen rapidly in almost all parts of the EU. Poverty and exclusion have also increased, including in many cities in the more developed Member States. This 6th Cohesion report departs from previous reports. It highlights the links of Cohesion Policy with the Europe 2020 strategy by including chapters on smart, inclusive and sustain…

The crisis has had a major impact on regions and cities across the EU. Regional economic disparities which were narrowing have stopped doing so, while unemployment has risen rapidly in almost all parts of the EU. Poverty and exclusion have also increased, including in many cities in the more developed Member States. This 6th Cohesion report departs from previous reports. It highlights the links of Cohesion Policy with the Europe 2020 strategy by including chapters on smart, inclusive and sustainable growth and shows how the Policy has evolved to strengthen its impact on EU objectives of growth and jobs and how good governance is essential for its effectiveness. Cohesion Policy has already improved regional competitiveness and people’s lives across the EU. It has supported business start-ups and helped people to obtain qualifications and new jobs. It has widened access to broadband and invested in rail and in better road links in the less developed parts of the EU. And it has increased markedly the number of homes connected to clean drinking water supply and wastewater treatment facilities. The EU Structural and Investment Funds (ESIF) are an increasingly important means of achieving the Europe 2020 goals, especially the employment and poverty reduction targets. In several Member States, they have become the main source of finance for public investment which Member States have cut back to reduce budget deficits. The ESIF will invest more up to 2020 in a low carbon economy, innovation and SMEs, quality employment, labour mobility and social inclusion, as well as in the core TEN-T and digital networks, education, training, lifelong learning and reform of public administration. The European Semester and the country specific recommendations which come out of it, play a critical role in underpinning Cohesion Policy. The legal framework for the ESIF in 2014 has introduced new rules to ensure the right regulatory and macroeconomic setting is in place for the Policy to have the most impact. In addition, ESIF will invest more in strengthening administrative capacity because of a growing understanding that without good governance, high growth rates and regional economic convergence cannot be achieved. These changes, together with a stronger focus on results, will ensure that Cohesion Policy will better tackle regional disparities in economic performance and living standards while also helping to achieve the Europe 2020 goals.