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17 February 2022

8th Report on European Economic, Social and Territorial Cohesion

As part of DISTICO project - currently ongoing- the course on European Social Dialogue, held by lecturer Rossella Rusca, explored the main highlights of the eighth Cohesion Report, published on 9 February 2022.

This is the report the Commission submits every three years to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions and communicates the progress in achieving economic, social and territorial cohesion in the European Union. It provides a clearer picture of what has been achieved and what remains to be done in the 2021-2027 planning period and will guide the EU's strategies and investments to assist regions to achieve balanced long-term growth.

The report focuses on the analysis of three topics:

  1. the progress made in achieving economic, social and territorial cohesion, including the socio-economic situation of the regions;
  2. the role the funds, the European Investment Bank financing and other EU funds and national policies, had on the progress made;
  3. an indication of future EU measures and policies needed to strengthen cohesion.

The report analyses the evolution of cohesion in the EU taking into account a wide range of indicators such as prosperity, employment, education levels, accessibility and governance.

The report also includes an analysis of the impact of COVID-19, which reveals that new territorial and social disparities have emerged. In addition to the impact of the pandemic, the rich analysis in this Report reveals a variety of trends in territorial cohesion within the Union. Less developed regions continue to catch up, but many transition regions are falling behind. Employment rates are higher than ever, but regional disparities remain high and poverty persist, even in prosperous regions.

Tertiary education levels continue to rise, but so does the education gap. Confidence in the EU has increased, but it remains low in some regions, particularly in rural areas. The quality of governance has improved, but the rule of law has declined in some Member States.

The report shows that less developed regions have caught up, but also that many transition regions remain stuck in a development trap. Moreover, the growing innovation gap will make it more difficult for both types of regions to catch up. At EU level, employment rates are now higher than before the 2008 economic crisis, but regional disparities are still above the pre-crisis level. Demographic change will affect all regions in the coming decades. Regions will have to adapt to a declining workforce and number of students as well as to a growing population aged 65 and over.

Fiscal consolidation after the 2008 crisis has reduced public investment and has not yet recovered to pre-crisis levels. As a result, cohesion policy funding has become more and more important, rising from the equivalent of 34% to 51% of public investment between 2007-2013 and 2014-2020.

The report underlines that green and digital transitions will be the main drivers of EU growth, but argues that without adequate policy action, new economic, social and territorial disparities could appear. It launches a reflection on how cohesion policy should evolve to meet these challenges. Over several decades, EU cohesion policy has reduced territorial disparities, stimulated economic growth and improved quality of life. It has played a central role in promoting upward social convergence, supported by the European Pillar of Social Rights.

At the presentation of the Report, Elisa Ferreira, Commissioner for Cohesion and Reforms, and Nicolas Schmit, Commissioner for Labour and Social Rights, agreed that the new cohesion policy programmes 2021-2027 will continue this good work, in close coordination with the financial NextGenerationEU guidelines. But challenges remain and policies need to adapt. Important issues still remain open.

How can cohesion policy support the green and digital transition? How can it respond to demographic challenges? How can it prevent the creation of new disparities or the exacerbation of existing ones?

How can it bring innovation to all regions, promote effective cross-border cooperation and strengthen links between cities and rural areas?

How can it better promote the social inclusion and the participation in the labour market of women, people with disabilities, young people, low-skilled workers, migrants and ethnic minorities, and people living in disadvantaged areas?

The rich content and analysis of this report will help feed the debate on what are the best tools and approaches to continue to achieve a more competitive, socially cohesive, territorially balanced European Union, not only in the coming years, but in the next 30 years.

In addition, the 8th Cohesion Report will feed into the discussions of the forthcoming Cohesion Forum (17-18 March), which will bring together representatives of the EU institutions, national, regional and local authorities from all Member States, economic and social partners, NGOs and academics. The forum will discuss how cohesion policy can ensure that no region is left behind and that all can benefit from the green and digital transitions. The Distico Project will continue to follow and analyse developments in this debate.

Links to the documents: https://ec.europa.eu/regional_policy/it/information/cohesion-report/

News


17 February 2022

8th Report on European Economic, Social and Territorial Cohesion

As part of DISTICO project - currently ongoing- the course on European Social Dialogue, held by lecturer Rossella Rusca, explored the main highlights of the eighth Cohesion Report, published on 9 February 2022.

This is the report the Commission submits every three years to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions and communicates the progress in achieving economic, social and territorial cohesion in the European Union. It provides a clearer picture of what has been achieved and what remains to be done in the 2021-2027 planning period and will guide the EU's strategies and investments to assist regions to achieve balanced long-term growth.

The report focuses on the analysis of three topics:

  1. the progress made in achieving economic, social and territorial cohesion, including the socio-economic situation of the regions;
  2. the role the funds, the European Investment Bank financing and other EU funds and national policies, had on the progress made;
  3. an indication of future EU measures and policies needed to strengthen cohesion.

The report analyses the evolution of cohesion in the EU taking into account a wide range of indicators such as prosperity, employment, education levels, accessibility and governance.

The report also includes an analysis of the impact of COVID-19, which reveals that new territorial and social disparities have emerged. In addition to the impact of the pandemic, the rich analysis in this Report reveals a variety of trends in territorial cohesion within the Union. Less developed regions continue to catch up, but many transition regions are falling behind. Employment rates are higher than ever, but regional disparities remain high and poverty persist, even in prosperous regions.

Tertiary education levels continue to rise, but so does the education gap. Confidence in the EU has increased, but it remains low in some regions, particularly in rural areas. The quality of governance has improved, but the rule of law has declined in some Member States.

The report shows that less developed regions have caught up, but also that many transition regions remain stuck in a development trap. Moreover, the growing innovation gap will make it more difficult for both types of regions to catch up. At EU level, employment rates are now higher than before the 2008 economic crisis, but regional disparities are still above the pre-crisis level. Demographic change will affect all regions in the coming decades. Regions will have to adapt to a declining workforce and number of students as well as to a growing population aged 65 and over.

Fiscal consolidation after the 2008 crisis has reduced public investment and has not yet recovered to pre-crisis levels. As a result, cohesion policy funding has become more and more important, rising from the equivalent of 34% to 51% of public investment between 2007-2013 and 2014-2020.

The report underlines that green and digital transitions will be the main drivers of EU growth, but argues that without adequate policy action, new economic, social and territorial disparities could appear. It launches a reflection on how cohesion policy should evolve to meet these challenges. Over several decades, EU cohesion policy has reduced territorial disparities, stimulated economic growth and improved quality of life. It has played a central role in promoting upward social convergence, supported by the European Pillar of Social Rights.

At the presentation of the Report, Elisa Ferreira, Commissioner for Cohesion and Reforms, and Nicolas Schmit, Commissioner for Labour and Social Rights, agreed that the new cohesion policy programmes 2021-2027 will continue this good work, in close coordination with the financial NextGenerationEU guidelines. But challenges remain and policies need to adapt. Important issues still remain open.

How can cohesion policy support the green and digital transition? How can it respond to demographic challenges? How can it prevent the creation of new disparities or the exacerbation of existing ones?

How can it bring innovation to all regions, promote effective cross-border cooperation and strengthen links between cities and rural areas?

How can it better promote the social inclusion and the participation in the labour market of women, people with disabilities, young people, low-skilled workers, migrants and ethnic minorities, and people living in disadvantaged areas?

The rich content and analysis of this report will help feed the debate on what are the best tools and approaches to continue to achieve a more competitive, socially cohesive, territorially balanced European Union, not only in the coming years, but in the next 30 years.

In addition, the 8th Cohesion Report will feed into the discussions of the forthcoming Cohesion Forum (17-18 March), which will bring together representatives of the EU institutions, national, regional and local authorities from all Member States, economic and social partners, NGOs and academics. The forum will discuss how cohesion policy can ensure that no region is left behind and that all can benefit from the green and digital transitions. The Distico Project will continue to follow and analyse developments in this debate.

Links to the documents: https://ec.europa.eu/regional_policy/it/information/cohesion-report/