On 19 March, the European Parliament’s REGI Committee held a meeting to present a study aimed at assessing how Cohesion Funds respond to demographic, technological and socio-economic challenges, such as population ageing, competitiveness, digitalisation, skills polarisation and disparities in institutional capacity.
Cohesion Policy (CP) is one of the EU’s main instruments to tackle these challenges, especially in less developed Member States. Cohesion Funding addressing these challenges accounted for 84% of the planned allocations in 2014-2020. This share decreased to 72% in the current period.
According to the study, CP has been effective in reducing regional disparities and supporting economic recovery. The combined effect of the 2014-2020 and 2021-2027 programmes on EU GDP is estimated to be an additional 0.9% by 2030.
CP investments in 2014-2020 stimulated innovation and competitiveness through SME support; improved research infrastructures, public buildings, and broadband access for households; and fostered cooperation between enterprises and research institutions.
64,5 million people participated in European Social Fund and Youth Employment Initiative actions, which led to the employment of 14,2 million people.
CP contributed to social inclusion and poverty reduction by assisting 4.1 million people with disabilities and 9.1 million people from marginalised communities; improving health facilities and services for 63 million people; increasing childcare and education facilities for 24 million children and youth and providing 28 000 social housing units.
CP also improved governance and resilience by promoting multi-level governance and stakeholder engagement, supporting institutional capacity building and rapid response to crises.
The study identifies CP’s strengths as follows: attention to territorial needs, targeted less developed areas, multiannual programming network, strengthened strategic approach, improved crises response capacity, promotion of shared management and support to capacity building.
The gaps analysis in the study highlights the following areas: difficulty in adapting programmes to local challenges, difficulty in outreaching businesses and populations most hit by socio-economic challenges, complex and changing regulatory framework and stringent eligibility criteria; weakness of institutional capacity and low awareness among the general public about the role of CP.
As for future CP, the study highlights the need for systemic answers to growing interlinked challenges, such as structural competitiveness decline; digital and green transitions and increasing social conflict; geopolitical tensions; and growing anti-EU sentiment. It also stresses that the CP spatial approach is crucial to valorise EU innovation and human capital potential.
To improve CP’s effectiveness, the study recommends strengthening its place-based and people-oriented approach, improving synergies with other EU, national and regional policies within a common strategic framework, concentrating investment in less developed regions, promoting participation in global networks, and improving the capacity to rapidly emerging challenges.
Regarding implementation, the study suggests that CP should improve multilateral governance and partnership; adopt a performance-based approach, ensure greater flexibility in implementation and eligibility criteria, strengthen institutional capacity building, and strengthen data collection, monitoring and evaluation systems.
