Debt obligations are likely to reduce resources available at a local level

The results of the CoR Europe 2020 Monitoring Platform "survey on public investments, growth and the national co-financing of ESIF" have shown that a large majority of cities and regions fear that the EU rules on public deficits have a negative impact on local investments.

According to the results of the survey, 37% of respondents believe that BISPs cover more than half of all public investment; while 31 % believe they cover about half. 89% of respondents see a risk in the requirement for national governments to balance the level of debt, leading to limit transfers to the subnational level, and 91% in the reduction of own resources related to the situation economic development of their region/city. Finally, 69% of respondents believe that the reduction of the national public co-financing should have a significant impact on growth and job creation at regional level.

The survey was conducted between the 16th and 31st of October 2014 with the majority of the 321 participants coming from local and regional authorities (58 %) and academic or research centres (20%).

The objective of the consultation was to evaluate the perception of local and regional authorities regarding the recent problem posed by the reduction of national co-financing levels for projects and programs under the Structural Funds and the European Investment (BISP) for the period 2014-2020, reduction resulting from the recovery of co-financing in the budget limits set by the stability and Growth Pact.

The results of the survey were sent to the European Council and the European Commission, in parallel with the start of the European Semester 2015, the launch of new investment plan of the Commission and to the ongoing preparation of the 2015 budget by the Member States the EU.