Lebrun at 6th Cohesion Forum calls for adequate financial flexibility to ensure co-financing of EU investment by regions and cities

"Cohesion policy succeeded in reducing the impact of the crisis but development gaps are on the rise again and the unemployment tragedy has not yet been addressed. We must all shape and implement the 2014-2020 policy framework with due regard for this challenge and with the involvement of all partners at national, regional and local level." This was the key message delivered by the President of the Committee of the Regions, Michel Lebrun, at the 6 th Cohesion Forum in Brussels on 8 and 9 September.

Using EU cohesion policy funds to secure renewed growth and investment was the focal point of the discussion at the 2014 Cohesion Forum, organised by the European Commission's Directorate-General for Urban and Regional Policy.

During a lively discussion with EU policy-makers and stakeholders, the CoR president stressed the key role played by the EU budget, which covered almost 60% of investment by regions and cities in the last three years. He recommended shifting the focus to job creation and improving current EU economic governance by distinguishing between debt-generating expenditure and real investment, such as co-financing EU projects. According to Mr Lebrun, "Once a region has focused on Europe 2020 priorities, its investment capacity must not be penalised by adverse macro-economic rules. The rigidity of fiscal policies has affected the availability of funds for public investment from 2011 onward. This situation is not likely to change as fast as we all wish, without initiatives to mobilise resources for new, targeted investments."

The impact of Growth and Stability Pact expenditure ceilings on re-launching investment and, in particular, on the implementation of cohesion policy programmes was one of the most debated topics of the forum. The discussion also involved the CoR rapporteur for the 6 th Cohesion Report, Nicola Zingaretti i (IT/PES) and the commissioner for Economic and Monetary Affairs, Jyrki Katainen i, who opposed the proposed softening in the current EU provisions on budgetary discipline.

Alongside a more favourable budgetary framework, the involvement of cities and regions as active partners in designing and implementing investment strategies was presented as a relevant and important factor in ensuring that the efforts made to put the EU economy back on track and improve territorial and social cohesion in Europe were effective. With this in mind, the CoR president highlighted the role of regional and local authorities in shaping and implementing the investment plans funded by EU cohesion policy, as well as the need to improve the participation of regions and cities in EU macro-economic policy coordination and the European Semester. The national reform programmes cannot be developed and implemented successfully without the full contribution of regions and cities. Without this new approach and genuine multilevel governance, most of the EU growth targets will not be reached. The CoR president conveyed this message to the President of the European Council, Herman Van Rompuy i, during a bilateral meeting.

Further priorities highlighted during the debate were the growing role played by the European Investment Bank as regards integrating EU grants with tailor-made loans and credit facilities, and the need for full mobilisation of the private sector.